Steel Price Europe : Monday Market Monitor - China - WEEK 05

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Monday Market Monitor - China - WEEK 05 - No fireworks after holiday - 06 Feb, 2012

Chinas inventory on construction steel sees growth when the Spring Festival is over.

Most market participants deny the possibility of positively stockpile by traders which in their point of view is passively replenishment. For the steel market after the Festival, demands incur difficulty to kick off and the scene that stock is larger than delivery sets to continue.

Alarming features of 2011 on steel market frustrates people
1. The percentage of loss incurring enterprises is climbing when it is approaching to the year end;
2. No winter stock is seen for most traders;
3. Traders are reluctant to push the price higher before and after the Festival. Steel market might not sense any optimism at least in the short term.

Then how to explain the increasing inventory catches the attention. Insiders indicate that it is a passive stockpile rather than normal stock driven by market demands. Reason supporting this statement is that no obvious sign for initiation has been seen while traders get arrivals after the Festival in accordance with monthly plan.

If compared carefully, both inventory volume and increasing amount is less than those for 2011. On the one hand, this situation concludes that steel mills release capacity stays in low on the other hand, trader are generally maintain cautious and are reluctant to build inventory.

The biggest constraint factor for steel market is demands instead of supply. The sluggish transactions give no impetus to price rise. Demands recover hardly; regulation on real estate exerts pressure on steel market, hence it is difficult for steel price to hike. But when taking cost and capital into consideration, the dumping room for the price is also limited. Small ranged fluctuation will be the major move.

The Chinese Long Product Price Index CLPPI has gone up by 14 points last week whereas the Chinese Flat Products Index CFPPI remained stable. The overall price index CHISPI inclined by 6 points.

Class	20-Jan	03-Feb	Change	%
CLPPI	7562	7576	14	0.2%
CFPPI	6710	6710	0	0.0%
CHISPI	7079	7085	6	0.1%

CLPPI - Chinese Long Product Price Index
CFPPI - Chinese Flat Product Price Index
CHISPI - Chinese Steel Price Index

Long Products

Category	20-Jan	03-Feb	Change	%
PI-WRC	7525	7528	3	0.0%
PI-Rebar	7606	7633	27	0.4%

PI - Product Index

Flat Products

Category	20-Jan	03-Feb	Change	%
PI-PLTS	5970	6005	35	0.6%
PI-HR	6860	6851	-9	-0.1%
PI-CR	6933	6937	4	0.1%
PI-GP	6556	6547	-9	-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	0	0
Jiangsu	0	0
Shandong	-50	-8
Fujian	0	0
Guangdong	-50	-8
Henan	0	0
Hebei	-70	-11
Shanxi	0	0
Liaoning	-100	-16
Yunnan	0	0

Change is on Feb 3rd as compared to 20th Jan 2012
Change is per tonne

WRC
6.5mm
High Speed

Location	CNY	USD
Shanghai	10	2
Hangzhou	-10	-2
Nanjing	-20	-3
Wuxi	-80	-13
Jinan	0	0
Hefei	0	0
Fuzhou	40	6
Nanchang	50	8
Guangzhou	0	0
Nanning	-80	-13
Changsha	0	0
Wuhan	-10	-2
Zhengzhou	0	0
Beijing	70	11
Tianjin	0	0
Baotou	0	0
Shijiazhuang	20	3
Taiyuan	30	5
Shenyang	20	3
Changchun	0	0
Harbin	0	0
Chongqing	-30	-5
Chengdu	0	0
Guiyang	-30	-5
Kunming	0	0
Xian	30	5
Lanzhou	40	6
Urumchi	0	0

Change is on Feb 3rd as compared to 20th Jan 2012
Change is per tonne

Rebars
20mm
HRB 400

Location	CNY	USD
Shanghai	10	2
Hangzhou	20	3
Nanjing	0	0
Wuxi	-30	-5
Jinan	0	0
Hefei	0	0
Fuzhou	0	0
Nanchang	50	8
Guangzhou	20	3
Nanning	-10	-2
Changsha	50	8
Wuhan	20	3
Zhengzhou	40	6
Beijing	60	9
Tianjin	50	8
Baotou	0	0
Shijiazhuang	50	8
Taiyuan	20	3
Shenyang	30	5
Changchun	0	0
Harbin	0	0
Chongqing	0	0
Chengdu	0	0
Guiyang	-50	-8
Kunming	0	0
Xian	30	5
Lanzhou	60	9
Urumchi	0	0

Change is on Feb 3rd as compared to 20th Jan 2012
Change is per tonne

Angle
#5

Location	CNY	USD
Shanghai	0	0
Hangzhou	0	0
Nanjing	0	0
Wuxi	0	0
Jinan	0	0
Hefei	0	0
Fuzhou	0	0
Nanchang	0	0
Guangzhou	0	0
Nanning	0	0
Changsha	0	0
Wuhan	-40	-6
Zhengzhou	0	0
Beijing	0	0
Tianjin	0	0
Baotou	0	0
Shijiazhuang	0	0
Taiyuan	0	0
Shenyang	0	0
Changchun	0	0
Harbin	0	0
Chongqing	0	0
Chengdu	0	0
Guiyang	0	0
Kunming	0	0
Xian	0	0
Lanzhou	0	0
Urumchi	0	0

Change is on Feb 3rd as compared to 20th Jan 2012
Change is per tonne

Channel
#16

Location	CNY	USD
Shanghai	0	0
Hangzhou	0	0
Nanjing	0	0
Wuxi	-30	-5
Jinan	0	0
Hefei	0	0
Fuzhou	0	0
Nanchang	0	0
Guangzhou	0	0
Nanning	0	0
Changsha	0	0
Wuhan	-40	-6
Zhengzhou	0	0
Beijing	0	0
Tianjin	0	0
Baotou	0	0
Shijiazhuang	0	0
Taiyuan	0	0
Shenyang	0	0
Changchun	0	0
Harbin	0	0
Chongqing	0	0
Chengdu	0	0
Guiyang	0	0
Kunming	0	0
Xian	0	0
Lanzhou	0	0
Urumchi	0	0

Change is on Feb 3rd as compared to 20th Jan 2012
Change is per tonne

Beam
#25

Location	CNY	USD
Shanghai	0	0
Hangzhou	0	0
Nanjing	0	0
Wuxi	0	0
Jinan	0	0
Hefei	0	0
Fuzhou	0	0
Nanchang	0	0
Guangzhou	0	0
Nanning	0	0
Changsha	-40	-6
Wuhan	-40	-6
Zhengzhou	0	0
Beijing	0	0
Tianjin	0	0
Baotou	0	0
Shijiazhuang	0	0
Taiyuan	0	0
Shenyang	0	0
Changchun	0	0
Harbin	0	0
Chongqing	0	0
Chengdu	0	0
Guiyang	0	0
Kunming	0	0
Xian	0	0
Lanzhou	0	0
Urumchi	0	0

Change is on Feb 3rd as compared to 20th Jan 2012
Change is per tonne

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