The mystery of steel price plummeting amidst improving economic parameters in China can be imputed to destocking at the traders and stockiest end.
Use of steel products particularly HRC as collateral for availing credit by the market operators was common in ascending market. Players have been rushing to sell amid price falls in November despite mild uptick in demand has led to normalization of supply/demand fundamentals.
Aggregate HRC inventory nationwide posted at 3.03 million tonnes, on 23rd November down 1.32 million tonnes or 30.35% YoY.
Demand for steel primarily includes two parts financial demand and the demand and end use demand. Financial demand as collateral for loans was the major factor driving up HRC inventory in the past few years. However with the banks accumulating Non Performing Assets and default in payment by operators recently has compelled them to ease out the volumes to liquidate bad debts. Since credit has been tight the operators have been forced to swallow the bitter pill leading to glut in the market.
Ironical selling and inventory reduction has rubbed salt to injury for the market which has been losing value.
November heralds the beginning of price retracing as the winter sets in and 2012 draws to close. Irrespective of some glimmer in HSBC PMI index climbing to 50.4 this week in 13 months fragility of demand and global economy continues to haunt.
Weak off season demand during winter plagues the industry as the cold winds blew the northern region, a lot of construction sites chose to shut down, leading to slump in buying of long products. Even though the flat market remained stable initially the malaise has caught up.
Steel mills have resorted to production cut with 0.25% drop in daily crude steel production in 2nd week of November m-o-m. Concurrently iron ore buying has dropped with mills opting for need based buying from the stock. Stockpiles have dropped to about 90 million tonne the lowest in last 6 months.
The Chinese Long Product Price Index CLPPI has gone down by 138 points last week whereas the Chinese Flat Products Index CFPPI has also gone down by 42 points. The overall price index CHISPI declined by 84 points.
| Class | 23-Nov | 30-Nov | Change | % |
| CLPPI | 6516 | 6378 | -138 | -2.1% |
| CFPPI | 6059 | 6017 | -42 | -0.7% |
| CHISPI | 6257 | 6173 | -84 | -1.3% |
CLPPI - Chinese Long Product Price Index
CFPPI - Chinese Flat Product Price Index
CHISPI - Chinese Steel Price Index
Long Products
| Category | 23-Nov | 30-Nov | Change | % |
| PI-WRC | 6397 | 6270 | -127 | -2.0% |
| PI-Rebar | 6661 | 6509 | -152 | -2.3% |
PI - Product Index
Flat Products
| Category | 23-Nov | 30-Nov | Change | % |
| PI-PLTS | 5316 | 5293 | -23 | -0.4% |
| PI-HR | 6203 | 6136 | -67 | -1.1% |
| PI-CR | 6144 | 6143 | -1 | 0.0% |
| PI-GP | 6217 | 6225 | 8 | 0.1% |
PI - Product Index
These indices have base of 10,000 as on July 1st 2008
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 | -100 | -16 |
| Jiangsu | -110 | -17 |
| Shandong | -100 | -16 |
| Fujian | -90 | -14 |
| Guangdong | -90 | -14 |
| Henan | -90 | -14 |
| Hebei | -100 | -16 |
| Shanxi | -80 | -13 |
| Liaoning | -90 | -14 |
| Yunnan | -70 | -11 |
Change is on 30th November as compared to 23rd November 2012
Change is per tonne
WRC
6.5mm
High Speed
| Location | CNY | USD |
| Shanghai | -130 | -20 |
| Hangzhou | -100 | -16 |
| Nanjing | -110 | -17 |
| Wuxi | -110 | -17 |
| Jinan | -40 | -6 |
| Hefei | -140 | -22 |
| Fuzhou | -160 | -25 |
| Nanchang | -80 | -13 |
| Guangzhou | -110 | -17 |
| Nanning | -130 | -20 |
| Changsha | -140 | -22 |
| Wuhan | -110 | -17 |
| Zhengzhou | -130 | -20 |
| Beijing | -40 | -6 |
| Tianjin | -100 | -16 |
| Baotou | 0 | 0 |
| Shijiazhuang | -30 | -5 |
| Taiyuan | -50 | -8 |
| Shenyang | 0 | 0 |
| Changchun | -80 | -13 |
| Harbin | 0 | 0 |
| Chongqing | 0 | 0 |
| Chengdu | -30 | -5 |
| Guiyang | 0 | 0 |
| Kunming | 0 | 0 |
| Xian | -90 | -14 |
| Lanzhou | -20 | -3 |
| Urumchi | -120 | -19 |
Change is on 30th November as compared to 23rd November 2012
Change is per tonne
Rebars
20mm
HRB 400
| Location | CNY | USD |
| Shanghai | -110 | -17 |
| Hangzhou | -150 | -23 |
| Nanjing | -80 | -13 |
| Wuxi | -100 | -16 |
| Jinan | -200 | -31 |
| Hefei | -140 | -22 |
| Fuzhou | -150 | -23 |
| Nanchang | -120 | -19 |
| Guangzhou | -140 | -22 |
| Nanning | -80 | -13 |
| Changsha | -240 | -38 |
| Wuhan | -110 | -17 |
| Zhengzhou | -160 | -25 |
| Beijing | -80 | -13 |
| Tianjin | -70 | -11 |
| Baotou | -80 | -13 |
| Shijiazhuang | 0 | 0 |
| Taiyuan | -50 | -8 |
| Shenyang | 0 | 0 |
| Changchun | -50 | -8 |
| Harbin | 0 | 0 |
| Chongqing | 0 | 0 |
| Chengdu | -30 | -5 |
| Guiyang | -20 | -3 |
| Kunming | 0 | 0 |
| Xian | -90 | -14 |
| Lanzhou | -10 | -2 |
| Urumchi | -110 | -17 |
Change is on 30th November as compared to 23rd November 2012
Change is per tonne
Angle
#5
| Location | CNY | USD |
| Shanghai | -30 | -5 |
| Hangzhou | 0 | 0 |
| Nanjing | 0 | 0 |
| Wuxi | -20 | -3 |
| Jinan | -30 | -5 |
| Hefei | 0 | 0 |
| Fuzhou | -50 | -8 |
| Nanchang | 0 | 0 |
| Guangzhou | -60 | -9 |
| Nanning | 0 | 0 |
| Changsha | 0 | 0 |
| Wuhan | 0 | 0 |
| Zhengzhou | 0 | 0 |
| Beijing | -30 | -5 |
| Tianjin | -100 | -16 |
| Baotou | -120 | -19 |
| Shijiazhuang | 0 | 0 |
| Taiyuan | 0 | 0 |
| Shenyang | 0 | 0 |
| Changchun | -50 | -8 |
| Harbin | 0 | 0 |
| Chongqing | -20 | -3 |
| Chengdu | 0 | 0 |
| Guiyang | 0 | 0 |
| Kunming | 0 | 0 |
| Xian | 0 | 0 |
| Lanzhou | -90 | -14 |
| Urumchi | -110 | -17 |
Change is on 30th November as compared to 23rd November 2012
Change is per tonne
Channel
#16
| Location | CNY | USD |
| Shanghai | -30 | -5 |
| Hangzhou | 0 | 0 |
| Nanjing | 0 | 0 |
| Wuxi | -20 | -3 |
| Jinan | -40 | -6 |
| Hefei | 0 | 0 |
| Fuzhou | -50 | -8 |
| Nanchang | 0 | 0 |
| Guangzhou | -10 | -2 |
| Nanning | 0 | 0 |
| Changsha | 0 | 0 |
| Wuhan | 0 | 0 |
| Zhengzhou | 0 | 0 |
| Beijing | -20 | -3 |
| Tianjin | -100 | -16 |
| Baotou | -120 | -19 |
| Shijiazhuang | 0 | 0 |
| Taiyuan | 0 | 0 |
| Shenyang | 0 | 0 |
| Changchun | -50 | -8 |
| Harbin | 0 | 0 |
| Chongqing | -100 | -16 |
| Chengdu | 0 | 0 |
| Guiyang | 0 | 0 |
| Kunming | -10 | -2 |
| Xian | 0 | 0 |
| Lanzhou | -90 | -14 |
| Urumchi | -120 | -19 |
Change is on 30th November as compared to 23rd November 2012
Change is per tonne
Beam
#25
| Location | CNY | USD |
| Shanghai | -30 | -5 |
| Hangzhou | 0 | 0 |
| Nanjing | -20 | -3 |
| Wuxi | 0 | 0 |
| Jinan | -30 | -5 |
| Hefei | 0 | 0 |
| Fuzhou | -50 | -8 |
| Nanchang | 0 | 0 |
| Guangzhou | 0 | 0 |
| Nanning | 0 | 0 |
| Changsha | 0 | 0 |
| Wuhan | 0 | 0 |
| Zhengzhou | -30 | -5 |
| Beijing | -30 | -5 |
| Tianjin | -90 | -14 |
| Baotou | -130 | -20 |
| Shijiazhuang | 0 | 0 |
| Taiyuan | 0 | 0 |
| Shenyang | 0 | 0 |
| Changchun | -50 | -8 |
| Harbin | 0 | 0 |
| Chongqing | -100 | -16 |
| Chengdu | 0 | 0 |
| Guiyang | 0 | 0 |
| Kunming | -50 | -8 |
| Xian | 0 | 0 |
| Lanzhou | -100 | -16 |
| Urumchi | -80 | -13 |
Change is on 30th November as compared to 23rd November 2012
Change is per tonne
2. Flats products
HRC
5.75mm
Common
| Location | CNY | USD |
| Shanghai | -30 | -5 |
| Hangzhou | -30 | -5 |
| Nanjing | 0 | 0 |
| Wuxi | -60 | -9 |
| Jinan | -30 | -5 |
| Hefei | -30 | -5 |
| Fuzhou | 0 | 0 |
| Nanchang | 30 | 5 |
| Guangzhou | -10 | -2 |
| Nanning | -40 | -6 |
| Changsha | -90 | -14 |
| Wuhan | -50 | -8 |
| Zhengzhou | -10 | -2 |
| Beijing | -70 | -11 |
| Tianjin | -90 | -14 |
| Baotou | 0 | 0 |
| Shijiazhuang | -20 | -3 |
| Taiyuan | 0 | 0 |
| Shenyang | -40 | -6 |
| Changchun | 0 | 0 |
| Harbin | 0 | 0 |
| Chongqing | -40 | -6 |
| Chengdu | -40 | -6 |
| Guiyang | -20 | -3 |
| Kunming | 0 | 0 |
| Xian | -50 | -8 |
| Lanzhou | -40 | -6 |
| Urumchi | -40 | -6 |
Change is on 30th November as compared to 23rd November 2012
Change is per tonne
Plates
20mm
Common
| Location | CNY | USD |
| Shanghai | -30 | -5 |
| Hangzhou | -70 | -11 |
| Nanjing | -30 | -5 |
| Wuxi | -10 | -2 |
| Jinan | -40 | -6 |
| Hefei | 0 | 0 |
| Fuzhou | 0 | 0 |
| Nanchang | 100 | 16 |
| Guangzhou | -30 | -5 |
| Nanning | -20 | -3 |
| Changsha | 0 | 0 |
| Wuhan | 0 | 0 |
| Zhengzhou | 0 | 0 |
| Beijing | -20 | -3 |
| Tianjin | -10 | -2 |
| Baotou | 0 | 0 |
| Shijiazhuang | -50 | -8 |
| Taiyuan | 0 | 0 |
| Shenyang | -60 | -9 |
| Changchun | 0 | 0 |
| Harbin | 0 | 0 |
| Chongqing | -40 | -6 |
| Chengdu | -20 | -3 |
| Guiyang | 0 | 0 |
| Kunming | 0 | 0 |
| Xian | -20 | -3 |
| Lanzhou | -50 | -8 |
| Urumchi | -50 | -8 |
Change is on 30th November as compared to 23rd November 2012
Change is per tonne
