| Clips | ||||||||||||||||||||||
| Credit loosening stems the rot in Chinese steel market - 22 Feb, 2012 | ||||||||||||||||||||||
|
Saturday night fever gripped the sentiment in Chinese steel market with an unexpected loosening of the credit with PBOC reducing the Cash Reserve Ratio by another 50 basis. Accelerated collapse in the long and flat product prices post Lunar Holidays spurred the government to expedite the correction. Credit market is expected to be augmented by an estimated CNY 350 to CNY 400 billion. The much needed fillip came as a surprise just when the market seemed doomed for another round of depressive run. The basic fundamentals beset with gallery of handicaps viz., Sluggish demand from the construction segment Reality sector remaining saddled in credit crunch and purchasing power with government maintaining a tight lease on lending rate Inventory levels remaining high in all major cities with mills having picked up on production in February by 1.9% from 1.67 million tonnes in January end to 1.7 million tonne per day in first10 days of February. It would be premature to verdict a turn of fortune at the on the cards but it has certainly provided some breathing space. No magic wand is expected in the short run however there are distinct possibilities in medium term with the onset of summer. Delayed project recovery may warm up the demand in summer. Credit policy is expected to loosen with the betterment of economic indicators as the inflation has been reined. At the same time the reality sector solely dependent on much desired easing of lending rate might get a fillip return the smile of runaway growth. Construction of the affordable houses this year remains a strong driving force to push up the steel prices. Country would keep building several key railway lines without any hesitation accompanied by the building of urban subway, steel demand would see possible boost. Economic and political stability likely to dawn upon the European and MENA market Q2 and Q3
CLPPI - Chinese Long Product Price Index CFPPI - Chinese Flat Product Price Index CHISPI - Chinese Steel Price Index (Source: www.steelprices-china.com) To know exact prevailing steel prices in China on daily basis, subscribe to services of SteelHome by sending a mail to admin@steelprices-china.com | ||||||||||||||||||||||
|
| ||||||||||||||||||||||
| Announcements | ||
 | Turkish crude steel output growth slows in April | |
