Monday Market Monitor - China - WEEK 37 - One month of slide
The price slide in Chinese domestic steel market, which started in week 34 for long products and for flats in week 35, continued in week 37 with reality coming to the fore with fissures in the citadel widening to gaps.
We have been unequivocally predicting hogwash in Chinese waters for the past fortnight as the fortitude vanished with each passing week of silence. With all the pompous expectations of turnaround spearheaded by housing projects, urbanization and seasonality proving to be a misnomer just on the eve of Chinese National Holidays we have hit the bull eye.
Global debt crisis with its diabolical pretension notwithstanding the unexpected turn of events in China can be imputed to inherent weakness in financial market and hawkish posture of the PBOC. Even though the market sentiments remained subdued in the entire Q3 PBOC maintained stoic silence on let up in interest hikes the construction and automobile sector remained unenthusiastic. Small and medium sized banks will start to place more than CNY 70 billion (USD 11 billion) of margin deposits at the central bank since September 15 curtailing the fund flow.
The sullenness was reflected in futures market with rebar and HRC slumping plummeting by CNY 59 per tonne at CNY 4744 per tonne and by CNY 63 per tonne to CNY 4725 per tonne respectively. Remarkably the diminishing fortunes in the market have accentuated the ambiguity with BaoSteel hiking the prices for October for HRC by CNY 60 per tonne but Wuhan has reduced by CNY 50 per tonne. Such bipolar movements have done little to stabilize the market.
September is likely to close unassumingly as there won’t be any let up on global and domestic fundamentals. However post National Holidays one can expect some movement before the winter sets in as it will be last chance for market operators to salvage their fortune before the year draws to a close.
The Chinese Long Product Price Index CLPPI has gone down by 56 points last week whereas the Chinese Flat Products Index CFPPI has also declined by 19 points. The overall price index CHISPI declined by 35 points.
| Class | 09-Sep | 16-Sep | Change | % |
| CLPPI | 7661 | 7605 | -56 | -0.7% |
| CFPPI | 7656 | 7637 | -19 | -0.2% |
| CHISPI | 7658 | 7623 | -35 | -0.5% |
CLPPI - Chinese Long Product Price Index
CFPPI - Chinese Flat Product Price Index
CHISPI - Chinese Steel Price Index
Long Products
| Category | 09-Sep | 16-Sep | Change | % |
| PI-WRC | 6461 | 6422 | -39 | -0.6% |
| PI-Rebar | 9113 | 9037 | -76 | -0.8% |
PI - Product Index
Flat Products
| Category | 09-Sep | 16-Sep | Change | % |
| PI-PLTS | 6922 | 6905 | -17 | -0.2% |
| PI-HR | 7921 | 7891 | -30 | -0.4% |
| PI-CR | 7453 | 7465 | 12 | 0.2% |
| PI-GP | 7565 | 7557 | -8 | -0.1% |
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 |
| Fujian Province | -60 | -9 |
| Hebei Province | -70 | -11 |
| Jiangsu Province | 0 | 0 |
| Shandong Province | -30 | -5 |
| Shanxi Province | -20 | -3 |
| Tianjin | -70 | -11 |
Change is on Sep 16th as compared to 9th Sep 2011
Change is per tonne
WRC
6.5mm
Common
| Location | CNY | USD |
| Changsha | -20 | -3 |
| Chengdu | -50 | -8 |
| Guiyang | -20 | -3 |
| Hangzhou | -60 | -9 |
| Kunming | 0 | 0 |
| Nanjing | 0 | 0 |
| Shanghai | -20 | -3 |
| Urumchi | 0 | 0 |
| Zhengzhou | -20 | -3 |
Change is on Sep 16th as compared to 9th Sep 2011
Change is per tonne
Rebars
20mm
HRB 400
| Location | CNY | USD |
| Beijing | -50 | -8 |
| Changsha | -50 | -8 |
| Chengdu | -80 | -12 |
| Chongqing | -50 | -8 |
| Fuzhou | -20 | -3 |
| Guangzhou | -40 | -6 |
| Guiyang | -30 | -5 |
| Hangzhou | -40 | -6 |
| Harbin | -60 | -9 |
| Hefei | -30 | -5 |
| Jinan | -30 | -5 |
| Kunming | 0 | 0 |
| Lanzhou | -70 | -11 |
| Nanchang | -20 | -3 |
| Nanjing | -50 | -8 |
| Shanghai | -20 | -3 |
| Shenyang | -30 | -5 |
| Shijiazhuang | -50 | -8 |
| Taiyuan | -90 | -14 |
| Tianjin | -50 | -8 |
| Urumchi | 0 | 0 |
| Wuhan | -10 | -2 |
| Xian | -100 | -15 |
| Zhengzhou | -40 | -6 |
Change is on Sep 16th as compared to 9th Sep 2011
Change is per tonne
Angle
#5
| Location | CNY | USD |
| Shanghai | 0 | 0 |
| Hangzhou | 0 | 0 |
| Nanjing | 0 | 0 |
| Jinan | 0 | 0 |
| Hefei | 0 | 0 |
| Fuzhou | 0 | 0 |
| Nanchang | 0 | 0 |
| Guangzhou | -30 | -5 |
| Changsha | 0 | 0 |
| Wuhan | 0 | 0 |
| Zhengzhou | 0 | 0 |
| Beijing | 0 | 0 |
| Tianjin | -60 | -9 |
| Shijiazhuang | 0 | 0 |
| Taiyuan | 0 | 0 |
| Shenyang | 0 | 0 |
| Harbin | 0 | 0 |
| Chongqing | 0 | 0 |
| Chengdu | 0 | 0 |
| Kunming | 0 | 0 |
| Xian | 0 | 0 |
| Lanzhou | 0 | 0 |
| Urumchi | 0 | 0 |
Change is on Sep 16th as compared to 9th Sep 2011
Change is per tonne
Channel
#16
| Location | CNY | USD |
| Shanghai | 0 | 0 |
| Hangzhou | 0 | 0 |
| Nanjing | -10 | -2 |
| Jinan | 0 | 0 |
| Hefei | 0 | 0 |
| Fuzhou | 0 | 0 |
| Nanchang | 0 | 0 |
| Guangzhou | -30 | -5 |
| Changsha | 0 | 0 |
| Wuhan | 0 | 0 |
| Zhengzhou | 0 | 0 |
| Beijing | 0 | 0 |
| Tianjin | -40 | -6 |
| Shijiazhuang | 0 | 0 |
| Taiyuan | 0 | 0 |
| Shenyang | 0 | 0 |
| Harbin | -30 | -5 |
| Chongqing | 0 | 0 |
| Chengdu | 0 | 0 |
| Kunming | 0 | 0 |
| Xian | 0 | 0 |
| Lanzhou | 0 | 0 |
| Urumchi | 0 | 0 |
Change is on Sep 16th as compared to 9th Sep 2011
Change is per tonne
Beam
#25
| Location | CNY | USD |
| Shanghai | 0 | 0 |
| Hangzhou | 0 | 0 |
| Nanjing | 0 | 0 |
| Jinan | 0 | 0 |
| Hefei | 0 | 0 |
| Fuzhou | 0 | 0 |
| Nanchang | 0 | 0 |
| Guangzhou | -50 | -8 |
| Changsha | 0 | 0 |
| Wuhan | 0 | 0 |
| Zhengzhou | 0 | 0 |
| Beijing | 0 | 0 |
| Tianjin | 0 | 0 |
| Shijiazhuang | 0 | 0 |
| Taiyuan | 0 | 0 |
| Shenyang | 0 | 0 |
| Harbin | 0 | 0 |
| Chongqing | 0 | 0 |
| Chengdu | 0 | 0 |
| Kunming | 0 | 0 |
| Xian | -20 | -3 |
| Lanzhou | 0 | 0 |
| Urumchi | 0 | 0 |
Change is on Sep 16th as compared to 9th Sep 2011
Change is per tonne
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