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| Chinese steel prices scoot after a mild burst - 29 Jul, 2010 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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The one week saga of steel price hike in China seems to be getting over, rather quickly than one would have thought. The climb down which commenced in re bars on July 27th and HRC prices started sliding on July 28th. It is noteworthy that the steel prices in China had remained suppressed for the best part of Q2 squandering chances of attaining stability during the peak consumption period. However quite unusually the silence was broken on 19th July sending rumor mills agog with the possibility of a revival. Experts in quandary started their post analysis imputing this uncanny movement to plethora of reasons ranging from prices below cost seeding the bottoming, stock depletion, revival of demand during post monsoon break before the winter etc. The affirmative liquidity enhancing announcement of the Central Bank by issuing CNY 45 billion worth of 1-year bill in the open market cast a testorgenic spell on the market pushing the futures by CNY 200 per tonne or USD 30 per tonne. Finished product revival had a cascading effect on the raw material prices leading to 7% growth in iron ore prices in less than a week. Mills un-leased mid-term prices improvement having all the en-trappings of making merry in fair weather. Rebar 20mm HRB 400
Change is on July 28th 2010 as compared to July 26th 2010 HRC 4.75mm Common
Change is on July 28th 2010 as compared to July 26th 2010 Despite all the hullaballoo which is customary when sparks fly in a dull and desolate milieu it can barely camouflage the anemic demand . Chinese economy has witnessed downtrend in construction, automobile and white good segment from May to June. H2 is expected to be worse as the demand cycle troughs during winter. The pessimism is aptly summed up by CEO and Chairman of ArcelorMittal Mr. LN Mittal statement the third quarter will be impacted by a combination of seasonal factors and the effects of the economic slowdown in China. He predicted a subdued Outlook for Q3 1. EBITDA expected to be between USD 2.1 billion to USD 2.5 billion 2. Capacity utilization is expected to decrease to approximately 70% due to seasonal slowdown Consequently, more market watchers are now convinced that last week’s price rebound was mainly driven by the futures and screen trading markets as well as spot market speculation. However, others believe the downward market trend has been reversed, but that some slight price volatility is still inevitable as downstream users will need some time to accept new prices. Despite all the uncertainty it can be conclusively said that the demand remaining subdued owing to slow pace of economic growth projected for H2 there is little respite discounting for hiccups. www.steelprices-china.com is a comprehensive service for tracking real time domestic steel prices and trends in China on daily basis. The scope of service includes 1. Domestic pricing information in China 2. Export levels from Turkey, Rotterdam, China, India and Black Sea The service is specifically designed to assist steel makers, traders, users and others connected with the industry to keep track of real time prices prevailing in the market and thus comprehensively evaluate steel pricing trends in the trend setting region Methodology and access 1. Benchmark products in each category with fixed commonly used sizes and grades 2. Average transaction levels which have settled well, based on continuous interactions with domestic mills and traders 4. On fixed market oriented payment terms 5. Daily updates 6. Data available since July 2008 5. Access through web site Products covered 1. Input materials and semis 2. Long Products 3. Flat Products 5. FOB levels for export FOB Black Sea, China, Turkey and India Other features The prices are displayed on weekly and monthly basis. They also have search facilities to access old data from the archives. Graphical representation of trends and comparison of price movement 2 or more products is also available. In addition, you can monitor currency exchange rates, metal prices, BDI for the day as well as access their archives for past data. Other features include converters for weight, length etc, glossary and advanced search functions. The benchmark product price information is supplemented by global pricing news. Subscription charges for 12 months period
How to subscribe 1. Register at www.steelprices-china.com and pay on line or ask for invoice 2. Send mail to admin@steelprices-china.com. (Sourced from www.steelprices-china.com) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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