Chinese steel and raw material market is captive to swinging sentiments dependent on prospective benefits. Activity slumps as the year draws to a close. Recent past has not been utterly disappointing either with steel price notching about 6% gain in since National Holiday. However after the power transition in mid-November correction became inevitable with aspirations getting doused.
Recent statement by Chinese Communist Party indicating policies more targeted and effective in 2013 to help with the economic recovery has given fillip to sinking morale.
Iron ore and steel prices have exhibited modicum of stability recently. Even though most of the mills have already stocked for winter offers and bids became aplenty in the last few days. Actual transactions are still elusive but some interest has been kindled.
CLPPI - Chinese Long Product Price Index
CFPPI - Chinese Flat Product Price Index
CHISPI - Chinese Steel Price Index
Iron ore price levels have remained unchanged too. If the optimism generated has not done any good it has stemmed the decline which seemed inevitable during winter lull.
Source - Strategic Research Institute