China spearheads the battle with recession exhibiting a valiant recovery in production and prices of most steel products defying veterans.
| Date | 01-Jul | 15-Jul | 29-Jul | Change |
| PI-Rebar | 6793 | 7073 | 7598 | 805 |
PI - Product Index
After the announcement of the USD 586 billion stimulus package followed by a slew of inconspicuous measures the writing was always on the wall that the revival bandwagon will commence in China. The tumult of this revival has been so astonishing that it makes even the most concerted prediction look risky. Chinese steel mills are on a record breaking spree with June steel production touching 50 million tonne likely to culminate in annual production of more than 550 million tonne. Iron ore prices look all set to break the barrier of previous peak within a week’s time.
According to the latest statistics, China's rebar production in June totaled 11 million tonne up 2.7 million tonnes or 34% YoY, the second straight month in which rebar production has exceeded 10 million tonnes.
The sharp jump in fixed assets investment post unleashing of cheaper credit has created booming demand in downstream sector. This quantum jump in factual as well as anticipated demand is the main reason behind this frenzy. The ecstasy is not devoid of speculative risk as stockiest and traders are sitting over record unmitigated inventories.
Market prices in northern and eastern China picked up remarkably at a weekly average of CNY 100 per tonne to CNY 120 per tonne. The growth in prices has been phenomenally high touching up to 20% in Beijing within a month. Although July has been bullish, the gradient has been particularly steep during the last decade of July averaging around 8% to 10% across the regions.
Rebar
20mm
HRB 400
| Region | 01-Jul | 15-Jul | 29-Jul | Change | % |
| Shanghai | 3660 | 3880 | 4100 | 440 | 12% |
| Chengdu | 3750 | 4000 | 4330 | 580 | 15% |
| Zhengzhou | 3770 | 3940 | 4270 | 500 | 13% |
| Beijing | 3820 | 4040 | 4500 | 680 | 18% |
Change is on July 29th 2009 as compared to July 1st 2009
Rate in CNY per tonne FOV
Inclusive of VAT
Rebar
20mm
HRB 400
| Region | 20-Jul | 29-Jul | Change | % |
| Shanghai | 3870 | 4100 | 230 | 6% |
| Chengdu | 4020 | 4330 | 310 | 8% |
| Zhengzhou | 3940 | 4270 | 330 | 8% |
| Beijing | 4100 | 4500 | 400 | 10% |
Change is on July 29th 2009 as compared to July 20th 2009
Rate in CNY per tonne FOV
Inclusive of VAT
The Chinese mills have successively hiked their prices in the past week. Following Hebei Iron & Steel’s hike of CNY 170 per tonne for rebar, Beijing’s Shougang announced it is raising August prices for 16mm to 25mm HRB335 rebar by CNY 550 per tonne touching CNY 4475 per tonne.
It is reported that October rebar future contract prices at SHFE closed at CNY 4331 per tonne on 28th July, breaching the previous day’s record of CNY 4236 per tonne. The magnitude of this growth in re bar fortunes is likely to transform into a windfall with prices touching CNY 4800 per tonne by early August.
Demand is far better than the previous years in current dull season, and would surge significantly in September and October, the traditional hot season.
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(Sourced from www. steelprices-china.com)
