Emerging from turbulent autumn steel market in China has seen glimmer of revival. The same factors which proved to be nemesis couple of months back has turned into blessing in disguise.
Chinese domestic market has been emanating flickers of revival recently. Steel prices have climbed by 0.5% with long product prices showing the way with an impressive hike of 1% in the last couple of days. . It is learnt that Tangshan billets were up CNY 30, as well as Rebar futures closing 1% higher.
The first signs of improvement have certainly kindled aspirations of revival. Silhouetted against the nightmarish debacle since August the change in direction comes as welcome reprieve for a beleaguered market. Emaciating developments in the economies of two major trading partners’ viz, US and European Union the collapse in Chinese steel market pulverized the global steel market. A wash out in the pink of season dealt a severe blow to the domestic demand. Hike in lending rates in China bore heavily on the demand from the construction segment which constitutes nearly 70% of the steel market in China.
However the turn of events has not been sudden with the market maintaining an eerie silence over the last couple of weeks possibly letting the dust settle after a rabble rousing debacle of 11 % over the past over 2 months.
Market seems to have bottomed out in the light of the curtailed production by mills (3.85% MoM) and progressive stock depletion. Moreover the inflation being restrained at 5.5% in October the market is expecting partial easing of interest rates to at least keep the construction sector and fixed asset creation alive if not thriving as it contributes nearly 12% of the GDP.
A fledgling revival need not be trendy for the moment as it is handicapped by sapping factors like onset of winter typically a period of low activity and consumption. At same time a pick-up in iron ore prices recently even though speculative portends to decimate mills bottom lines.
The Chinese Long Product Price Index CLPPI continued in upward trends with 94 points last week whereas the Chinese Flat Products Index CFPPI has also gone up by 5 points. The overall price index CHISPI inclined by 43 points.
| Class | 11-Nov | 18-Nov | Change | % |
| CLPPI | 7844 | 7938 | 94 | 1.2% |
| CFPPI | 6861 | 6866 | 5 | 0.1% |
| CHISPI | 7287 | 7330 | 43 | 0.6% |
CLPPI - Chinese Long Product Price Index
CFPPI - Chinese Flat Product Price Index
CHISPI - Chinese Steel Price Index
Long Products
| Category | 11-Nov | 18-Nov | Change | % |
| PI-WRC | 7878 | 7965 | 87 | 1.1% |
| PI-Rebar | 7802 | 7905 | 103 | 1.3% |
PI - Product Index
Flat Products
| Category | 11-Nov | 18-Nov | Change | % |
| PI-PLTS | 6134 | 6134 | 0 | 0.0% |
| PI-HR | 6963 | 6977 | 14 | 0.2% |
| PI-CR | 7113 | 7110 | -3 | 0.0% |
| PI-GP | 6947 | 6908 | -39 | -0.6% |
PI - Product Index
To know more about these indices please visit
http://steelprices-china.com/spi_services/spi.html
1. Long products
Billets
150*150
Q235
| Location | CNY | USD |
| Shanghai | 80 | 13 |
| Jiangsu | 10 | 2 |
| Shandong | -10 | -2 |
| Fujian | 100 | 16 |
| Guangdong | 70 | 11 |
| Henan | 20 | 3 |
| Hebei | -10 | -2 |
| Shanxi | 0 | 0 |
| Liaoning | -30 | -5 |
| Yunnan | -10 | -2 |
Change is on Nov 18th as compared to 11th Nov 2011
Change is per tonne
WRC
6.5mm
High Speed
| Location | CNY | USD |
| Shanghai | 30 | 5 |
| Hangzhou | 10 | 2 |
| Nanjing | 0 | 0 |
| Wuxi | 0 | 0 |
| Jinan | 30 | 5 |
| Hefei | 40 | 6 |
| Fuzhou | 20 | 3 |
| Nanchang | 50 | 8 |
| Guangzhou | 30 | 5 |
| Nanning | 170 | 27 |
| Changsha | 170 | 27 |
| Wuhan | 90 | 14 |
| Zhengzhou | 90 | 14 |
| Beijing | 60 | 9 |
| Tianjin | 80 | 13 |
| Baotou | 0 | 0 |
| Shijiazhuang | 40 | 6 |
| Taiyuan | 130 | 20 |
| Shenyang | 0 | 0 |
| Changchun | -10 | -2 |
| Harbin | 0 | 0 |
| Chongqing | 70 | 11 |
| Chengdu | 50 | 8 |
| Guiyang | 50 | 8 |
| Kunming | 150 | 23 |
| Xian | 60 | 9 |
| Lanzhou | 0 | 0 |
| Urumchi | 0 | 0 |
Change is on Nov 18th as compared to 11th Nov 2011
Change is per tonne
Rebars
20mm
HRB 400
| Location | CNY | USD |
| Shanghai | 40 | 6 |
| Hangzhou | 10 | 2 |
| Nanjing | 40 | 6 |
| Wuxi | 20 | 3 |
| Jinan | 50 | 8 |
| Hefei | 80 | 13 |
| Fuzhou | 70 | 11 |
| Nanchang | 50 | 8 |
| Guangzhou | 70 | 11 |
| Nanning | 80 | 13 |
| Changsha | 190 | 30 |
| Wuhan | 50 | 8 |
| Zhengzhou | 40 | 6 |
| Beijing | 30 | 5 |
| Tianjin | 20 | 3 |
| Baotou | 0 | 0 |
| Shijiazhuang | 70 | 11 |
| Taiyuan | 130 | 20 |
| Shenyang | -20 | -3 |
| Changchun | -20 | -3 |
| Harbin | 0 | 0 |
| Chongqing | 120 | 19 |
| Chengdu | 100 | 16 |
| Guiyang | 100 | 16 |
| Kunming | 150 | 23 |
| Xian | 90 | 14 |
| Lanzhou | 50 | 8 |
| Urumchi | 0 | 0 |
Change is on Nov 18th as compared to 11th Nov 2011
Change is per tonne
Angle
#5
| Location | CNY | USD |
| Shanghai | -40 | -6 |
| Hangzhou | -60 | -9 |
| Nanjing | 0 | 0 |
| Wuxi | -50 | -8 |
| Jinan | -50 | -8 |
| Hefei | -70 | -11 |
| Fuzhou | 0 | 0 |
| Nanchang | -50 | -8 |
| Guangzhou | -20 | -3 |
| Nanning | 0 | 0 |
| Changsha | 0 | 0 |
| Wuhan | 0 | 0 |
| Zhengzhou | 0 | 0 |
| Beijing | 0 | 0 |
| Tianjin | 30 | 5 |
| Baotou | 0 | 0 |
| Shijiazhuang | 30 | 5 |
| Taiyuan | 30 | 5 |
| Shenyang | -30 | -5 |
| Changchun | 0 | 0 |
| Harbin | 0 | 0 |
| Chongqing | 0 | 0 |
| Chengdu | 0 | 0 |
| Guiyang | 0 | 0 |
| Kunming | 0 | 0 |
| Xian | -50 | -8 |
| Lanzhou | -50 | -8 |
| Urumchi | 0 | 0 |
Change is on Nov 18th as compared to 11th Nov 2011
Change is per tonne
Channel
#16
| Location | CNY | USD |
| Shanghai | -40 | -6 |
| Hangzhou | -60 | -9 |
| Nanjing | 0 | 0 |
| Wuxi | -80 | -13 |
| Jinan | -50 | -8 |
| Hefei | -60 | -9 |
| Fuzhou | 0 | 0 |
| Nanchang | -50 | -8 |
| Guangzhou | 0 | 0 |
| Nanning | 0 | 0 |
| Changsha | -50 | -8 |
| Wuhan | 0 | 0 |
| Zhengzhou | 0 | 0 |
| Beijing | 0 | 0 |
| Tianjin | 20 | 3 |
| Baotou | 0 | 0 |
| Shijiazhuang | 30 | 5 |
| Taiyuan | 30 | 5 |
| Shenyang | -30 | -5 |
| Changchun | 0 | 0 |
| Harbin | 0 | 0 |
| Chongqing | 0 | 0 |
| Chengdu | 0 | 0 |
| Guiyang | 0 | 0 |
| Kunming | -100 | -16 |
| Xian | -70 | -11 |
| Lanzhou | -50 | -8 |
| Urumchi | 50 | 8 |
Change is on Nov 18th as compared to 11th Nov 2011
Change is per tonne
Beam
#25
| Location | CNY | USD |
| Shanghai | -50 | -8 |
| Hangzhou | -50 | -8 |
| Nanjing | 0 | 0 |
| Wuxi | -50 | -8 |
| Jinan | -50 | -8 |
| Hefei | -60 | -9 |
| Fuzhou | -50 | -8 |
| Nanchang | -50 | -8 |
| Guangzhou | 0 | 0 |
| Nanning | 0 | 0 |
| Changsha | -20 | -3 |
| Wuhan | 0 | 0 |
| Zhengzhou | 0 | 0 |
| Beijing | 0 | 0 |
| Tianjin | 30 | 5 |
| Baotou | 0 | 0 |
| Shijiazhuang | 30 | 5 |
| Taiyuan | 30 | 5 |
| Shenyang | -20 | -3 |
| Changchun | 0 | 0 |
| Harbin | 0 | 0 |
| Chongqing | 0 | 0 |
| Chengdu | 0 | 0 |
| Guiyang | 0 | 0 |
| Kunming | -50 | -8 |
| Xian | -80 | -13 |
| Lanzhou | -30 | -5 |
| Urumchi | 0 | 0 |
Change is on Nov 18th as compared to 11th Nov 2011
Change is per tonne
2. Flats products
HRC
5.75mm
Common
| Location | CNY | USD |
| Shanghai | -20 | -3 |
| Hangzhou | 10 | 2 |
| Nanjing | 30 | 5 |
| Wuxi | 50 | 8 |
| Jinan | 20 | 3 |
| Hefei | 0 | 0 |
| Fuzhou | 100 | 16 |
| Nanchang | 0 | 0 |
| Guangzhou | 30 | 5 |
| Nanning | 10 | 2 |
| Changsha | 50 | 8 |
| Wuhan | 20 | 3 |
| Zhengzhou | 10 | 2 |
| Beijing | 20 | 3 |
| Tianjin | 20 | 3 |
| Baotou | 0 | 0 |
| Shijiazhuang | 20 | 3 |
| Taiyuan | 30 | 5 |
| Shenyang | 0 | 0 |
| Changchun | -20 | -3 |
| Harbin | -50 | -8 |
| Chongqing | -10 | -2 |
| Chengdu | 40 | 6 |
| Guiyang | 0 | 0 |
| Kunming | 70 | 11 |
| Xian | 50 | 8 |
| Lanzhou | 50 | 8 |
| Urumchi | -100 | -16 |
Change is on Nov 18th as compared to 11th Nov 2011
Change is per tonne
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