New regime began on cautious note harping upon stability. Steel market in China and more so in the globe had kept their fingers crossed expecting radical stimulus package to shake slumberous Chinese economy. Mellowed tones at the Communist conclave dissipated expectancy spewing the ugly reality to the fore yet again.
Hard landing of 1% in steel price within a week with long product taking even deeper plunge of 2% of reminiscent of the nebulous Q2 and Q3 . Economic headwinds barely waning in isolated quarters around the globe this was another moaning.
Domestic spot steel market retreated across the board this week as market transactions shrank further. Accompanied by the sharp drop in stock market and futures market on Monday, both the longs market and flats market went downhill.
Construction steel market extended the weak pattern of last week, with prices in major markets declining. Off seasonal effect froze transactions with downstream demand shrinking.
HR market turned back after sharp rises for 2 straight weeks. Decline of !% during the week is misleading with price declining by CNY 100-140 per tonne in some regions.
However, falls in the second half week slowed, due to the continuing short supply of the high quality material and the overall inventory falling to 10.6 million tonnes from 11 millon tonne last week.
Notably all the major mills earlier hiked HRC price in the range of CNY 50-200 per tonne bolstered by gradual improvement in steel price since National Holiday.
Approaching winter spell gloom for uptick in demand .Most of traders stockiest have reached consensus on weakening demand as well as climbing inventory level.
Class16-Nov23-NovChange%
CLPPI66196516-103-1.6%
CFPPI61186059-59-1.0%
CHISPI63356257-78-1.2%
CLPPI - Chinese Long Product Price Index
CFPPI - Chinese Flat Product Price Index
CHISPI - Chinese Steel Price Index
