2012 can be certainly be christened as a Doomsday year in Chinese steel industry with market buried under an avalanche of overcapacity pushing prices down by more than 12 % YoY.
The malaise is evident from the fact that the estimated growth of crude steel production in China in 2012 has dwindled to less than 4%
The domestic steel prices in China, after staying stable for first 4 months, started sliding in May and lost total steam in September. But have posted partial recovery by the year end.
| Class | 2-Jan-12 | 31-Dec-12 | Change | % |
| CLPPI | 7694 | 6452 | -1242 | -16.14% |
| CFPPI | 6736 | 6128 | -608 | -9.03% |
| CHISPI | 7151 | 6268 | -883 | -12.35% |
CLPPI - Chinese Long Product Price Index
CFPPI - Chinese Flat Product Price Index
CHISPI - Chinese Steel Price Index
Base of 10,000 as on July1st 2008
Source:
http://www.steelguru.com/chinese_news/Chinese_domestic_steel_prices_in_2012_crash_by_12pct_YoY/296954.html
