Chinese domestic steel prices are continuing their down ward march and have gone down by almost 2.5% in last 3 weeks. The average fall in long products is a shade higher than flats although HR prices have dived the most during this period.
The Chinese Long Product Price Index CLPPI, during last 3 weeks, decreased by 162 points or 2.6% from 6331 on January 7th 2010 to 6169 on January 28th 2010. Whereas the Chinese Flat Products Index CFPPI decreased by 149 points or 2.3% from 6510 on January 7th 2010 to 6361 on January 28th 2010.
Chinese steel mills are facing double whammy as while the input materials are going up, their finished steel realization is on down trend on credit squeeze and inventory built up.
It is seen that coke prices, during this period, have gone up by more than CNY 100 per tonne while scrap has also gone up by CNY 50 per tonne to CNY 100 per tonne in different locations.
On the other hand selling price of benchmark products for both long and flat categories ie rebars and HR have dropped by more than CNY 100 per tonne on average during this period.