Steel demand in China has become euphemism off late. Wild swings in the in buying and price which had become typical of Chinese steel market has vanished into oblivion yielding space to depressive humdrum acquiring familiarity with the contemporary economic situation.
Global economic depression in its second avatar has been more ferocious taking the sheen of BRIC nations. China being at the vanguard of economic revival has stands in stark contrast with indolent steel demand culminating inactivity in Q3 and Q4.
Irrespective of the rear guard measures ranging from production pruning to partial roll back in lending rates market has remained sluggish and the prices stoic.
An incision reveals startling paradoxes predominant in Chinese steel demand pattern. The much touted hike in lending rates a measure to rein inflation has left a sizeable section of the private sector unscathed. With the bulk of the brunt being borne by the government sector private sector continues to flourish with credit and investment available from the unorganized sector. Surprisingly the fixed asset investment in private sector has zoomed ahead by 33% till October 2011 .Whereas the government sector investment has grown by meager 12%.
Infrastructure is up just 4% and in recent months has fallen 7% below last year’s levels.
Housing sector being the major demand driver for steel in China accounting for almost 70% of the steel consumption has become a cynosure of state policies with overbearing emphasis on 10 million budget housing. Conversely the private reality sector with substantially larger returns has been of avid interest by the private sector. The state restrictive credit policy avowedly pursued by the public financial institutions has merely brazed past this segment Private sector spending has continued to record high growth with money supply outside of the official banking system has remained strong.
However a steadfast pursuance of restrictive credit policy in the medium might provide the much sought after stimulus for growth with private sector diverting their resources towards remunerative budget housing in turn releasing government funds for the beleaguered infrastructure sector generating steel demand.
With bulk of the 2011 squandered in economic crisis, surplus production and credit squeeze 2012 beckons a possible tick with upturn in steel demand from infrastructure and budget housing segment. On the other hand a more flexible credit policy by the government as inflationary monster has been reined would certainly give fillip to market sentiment.
The Chinese Long Product Price Index CLPPI has gone down by 50 points last week whereas the Chinese Flat Products Index CFPPI has also gone down by 14 points. The overall price index CHISPI declined by 29 points.
| Class | 16-Dec | 23-Dec | Change | % |
| CLPPI | 7794 | 7744 | -50 | -0.6% |
| CFPPI | 6780 | 6766 | -14 | -0.2% |
| CHISPI | 7219 | 7190 | -29 | -0.4% |
CLPPI - Chinese Long Product Price Index
CFPPI - Chinese Flat Product Price Index
CHISPI - Chinese Steel Price Index
Long Products
| Category | 16-Dec | 23-Dec | Change | % |
| PI-WRC | 7814 | 7749 | -65 | -0.8% |
| PI-Rebar | 7769 | 7738 | -31 | -0.4% |
PI - Product Index
Flat Products
| Category | 16-Dec | 23-Dec | Change | % |
| PI-PLTS | 6035 | 6010 | -25 | -0.4% |
| PI-HR | 6927 | 6918 | -9 | -0.1% |
| PI-CR | 7000 | 6984 | -16 | -0.2% |
| PI-GP | 6664 | 6635 | -29 | -0.4% |
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 | -20 | -3 |
| Jiangsu | -40 | -6 |
| Shandong | -20 | -3 |
| Fujian | -100 | -16 |
| Guangdong | -50 | -8 |
| Henan | -50 | -8 |
| Hebei | -60 | -9 |
| Shanxi | -80 | -13 |
| Liaoning | -20 | -3 |
| Yunnan | 0 | 0 |
Change is on Dec 23rd as compared to 16th Dec 2011
Change is per tonne
WRC
6.5mm
High Speed
| Location | CNY | USD |
| Shanghai | -30 | -5 |
| Hangzhou | -80 | -13 |
| Nanjing | 0 | 0 |
| Wuxi | -30 | -5 |
| Jinan | -80 | -13 |
| Hefei | -110 | -17 |
| Fuzhou | 10 | 2 |
| Nanchang | -20 | -3 |
| Guangzhou | -10 | -2 |
| Nanning | -20 | -3 |
| Changsha | -90 | -14 |
| Wuhan | -70 | -11 |
| Zhengzhou | -40 | -6 |
| Beijing | -50 | -8 |
| Tianjin | -30 | -5 |
| Baotou | -50 | -8 |
| Shijiazhuang | -50 | -8 |
| Taiyuan | -60 | -9 |
| Shenyang | 0 | 0 |
| Changchun | 0 | 0 |
| Harbin | 0 | 0 |
| Chongqing | -40 | -6 |
| Chengdu | -10 | -2 |
| Guiyang | -100 | -16 |
| Kunming | 0 | 0 |
| Xian | -50 | -8 |
| Lanzhou | -40 | -6 |
| Urumchi | 0 | 0 |
Change is on Dec 23rd as compared to 16th Dec 2011
Change is per tonne
Rebars
20mm
HRB 400
| Location | CNY | USD |
| Shanghai | -20 | -3 |
| Hangzhou | -40 | -6 |
| Nanjing | 0 | 0 |
| Wuxi | 0 | 0 |
| Jinan | 0 | 0 |
| Hefei | -50 | -8 |
| Fuzhou | 100 | 16 |
| Nanchang | -50 | -8 |
| Guangzhou | 10 | 2 |
| Nanning | -20 | -3 |
| Changsha | -50 | -8 |
| Wuhan | 0 | 0 |
| Zhengzhou | -10 | -2 |
| Beijing | -50 | -8 |
| Tianjin | -30 | -5 |
| Baotou | -50 | -8 |
| Shijiazhuang | -50 | -8 |
| Taiyuan | -20 | -3 |
| Shenyang | 0 | 0 |
| Changchun | 0 | 0 |
| Harbin | 0 | 0 |
| Chongqing | -40 | -6 |
| Chengdu | 0 | 0 |
| Guiyang | -50 | -8 |
| Kunming | -50 | -8 |
| Xian | 0 | 0 |
| Lanzhou | -20 | -3 |
| Urumchi | 0 | 0 |
Change is on Dec 23rd as compared to 16th Dec 2011
Change is per tonne
Angle
#5
| Location | CNY | USD |
| Shanghai | 0 | 0 |
| Hangzhou | 0 | 0 |
| Nanjing | -50 | -8 |
| Wuxi | 0 | 0 |
| Jinan | -20 | -3 |
| Hefei | -60 | -9 |
| Fuzhou | -20 | -3 |
| Nanchang | 0 | 0 |
| Guangzhou | 0 | 0 |
| Nanning | -50 | -8 |
| Changsha | -60 | -9 |
| Wuhan | 0 | 0 |
| Zhengzhou | -10 | -2 |
| Beijing | -30 | -5 |
| Tianjin | -70 | -11 |
| Baotou | -100 | -16 |
| Shijiazhuang | -50 | -8 |
| Taiyuan | -100 | -16 |
| Shenyang | 0 | 0 |
| Changchun | 0 | 0 |
| Harbin | 0 | 0 |
| Chongqing | -50 | -8 |
| Chengdu | 0 | 0 |
| Guiyang | 0 | 0 |
| Kunming | 0 | 0 |
| Xian | 0 | 0 |
| Lanzhou | 0 | 0 |
| Urumchi | -50 | -8 |
Change is on Dec 23rd as compared to 16th Dec 2011
Change is per tonne
Channel
#16
| Location | CNY | USD |
| Shanghai | 0 | 0 |
| Hangzhou | 0 | 0 |
| Nanjing | -50 | -8 |
| Wuxi | -20 | -3 |
| Jinan | 0 | 0 |
| Hefei | -40 | -6 |
| Fuzhou | -20 | -3 |
| Nanchang | 0 | 0 |
| Guangzhou | 0 | 0 |
| Nanning | -50 | -8 |
| Changsha | -50 | -8 |
| Wuhan | 0 | 0 |
| Zhengzhou | -20 | -3 |
| Beijing | -20 | -3 |
| Tianjin | -70 | -11 |
| Baotou | -100 | -16 |
| Shijiazhuang | -50 | -8 |
| Taiyuan | -100 | -16 |
| Shenyang | 0 | 0 |
| Changchun | 0 | 0 |
| Harbin | 0 | 0 |
| Chongqing | -30 | -5 |
| Chengdu | 0 | 0 |
| Guiyang | 0 | 0 |
| Kunming | 0 | 0 |
| Xian | -50 | -8 |
| Lanzhou | 0 | 0 |
| Urumchi | -50 | -8 |
Change is on Dec 23rd as compared to 16th Dec 2011
Change is per tonne
Beam
#25
| Location | CNY | USD |
| Shanghai | 0 | 0 |
| Hangzhou | 0 | 0 |
| Nanjing | -20 | -3 |
| Wuxi | 0 | 0 |
| Jinan | 0 | 0 |
| Hefei | -40 | -6 |
| Fuzhou | -50 | -8 |
| Nanchang | 0 | 0 |
| Guangzhou | 0 | 0 |
| Nanning | -50 | -8 |
| Changsha | -50 | -8 |
| Wuhan | 0 | 0 |
| Zhengzhou | -20 | -3 |
| Beijing | -20 | -3 |
| Tianjin | -70 | -11 |
| Baotou | -100 | -16 |
| Shijiazhuang | -50 | -8 |
| Taiyuan | -100 | -16 |
| Shenyang | 0 | 0 |
| Changchun | 0 | 0 |
| Harbin | 0 | 0 |
| Chongqing | -30 | -5 |
| Chengdu | 0 | 0 |
| Guiyang | 0 | 0 |
| Kunming | 0 | 0 |
| Xian | -50 | -8 |
| Lanzhou | 0 | 0 |
| Urumchi | 0 | 0 |
Change is on Dec 23rd as compared to 16th Dec 2011
Change is per tonne
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