CSPI weekly report on China Steel Price Index

2024-07-24 14:06:34

In the week of 8 July-12 July, China's steel price index fell again after a small repair in the previous week and hit a new low since the beginning of the year. The long steel price index and plate price index both declined.

During the week, China Steel Price Index (CSPI) was 101.88 points, down 1.66 points week-on-week, or 1.60%; down 1.08 points from the end of last month, or 1.05%; down 11.02 points from the end of last year, or 9.76%; and down 7.23 points year-on-year, or 6.63%.

Among them, the price index of long steel was 103.88 points, a week-on-week drop of 2.08 points, or 1.97 per cent; a drop of 1.32 points, or 1.25 per cent, compared with the end of last month; a drop of 12.23 points, or 10.53 per cent, compared with the end of last year; year-on-year drop of 8.56 points, or 7.61 per cent.

Plate price index was 100.36 points, down 1.46 points or 1.44 per cent week-on-week; down 0.94 points or 0.93 per cent from the end of last month; down 11.44 points or 10.23 per cent from the end of last year; down 9.43 points or 8.59 per cent year-on-year.

Region

The steel price index in all six major regions of the country declined week-on-week.

The largest drop is in North China, and the smallest drop is in Northwest China.

Specifically, the steel price index in North China was 101.16 points, a week-on-week decline of 1.91 points, or 1.85%; year-on-year decline of 5.63 points, or 5.27%.

The steel price index in Northeast China was 101.05 points, a week-on-week drop of 1.62 points, or 1.58%; year-on-year decline of 5.42 points, or 5.09%.

East China Steel Price Index was 102.39 points, down 1.80 points, or 1.73% week-on-week; down 7.66 points, or 6.96% year-on-year.

The steel price index in the south-central region was 103.76 points, a week-on-week decline of 1.60 points, down 1.52%; year-on-year decline of 0.86 points, down 0.82%.

Southwest region steel price index was 101.47 points, down 1.37 points week-on-week, down 1.33%; year-on-year decline of 1.11 points, down 1.08%.

The steel price index in Northwest China was 103.74 points, down 1.35 points, or 1.29 per cent, week-on-week; down 1.01 points, or 0.96 per cent, year-on-year.

rationale

Varieties

Compared with the end of last month, the prices of the eight major steel varieties have declined, of which the largest drop is the high wire, the smallest drop is the hot-rolled seamless pipe.

Specifically, the price of 6 mm diameter high wire was 3,740 yuan / tonne, down 56 yuan / tonne from the end of last month, down 1.48%;

The price of 16 mm diameter rebar was RMB 3,485 per tonne, down RMB 44 per tonne from the end of last month, a decrease of 1.25%;

The price of 5# angle steel was RMB 3,713 per tonne, down RMB 47 per tonne, or 1.25%, from the end of last month;

The price of 219 mm diameter x 10 mm hot-rolled seamless pipe was RMB 4,860 per tonne, down RMB 18 per tonne, or 0.38%, from the end of last month.

The price of 3 mm hot rolled coil was RMB 3,757 per tonne, down RMB 33 per tonne, or 0.87%, from the end of last month;

The price of 1 mm cold rolled sheet was RMB 4,219 per tonne, down RMB 49 per tonne, or 1.15%, from the end of last month;

The price of 1 mm galvanised sheet was RMB 4836 per tonne, down RMB 24 per tonne, or 0.49%, from the end of last month.

analysed

From the cost side, the General Administration of Customs data show that in May, the average price of imported iron ore was 105.80 U.S. dollars / tonne, down 7.32 U.S. dollars / tonne, or 6.47%; than the average price of December 2023 fell 17.46 U.S. dollars / tonne, or 14.17%; than the same period last year, lower than the $ 11.11 U.S. dollars / tonne, a decline of 9.50%.

In the week of July 8-July 12, the price of iron ore concentrate in the domestic market was RMB958 per tonne, up RMB15 per tonne, or 1.59%, compared with the end of last month; down RMB152 per tonne, or 13.69%, compared with the end of last year; and up RMB31 per tonne, or 3.34%, compared with the same period last year.

The price of coking coal (grade 10) was RMB 1,923 per tonne, unchanged from the end of last month; down RMB 670 per tonne, or 25.84%, from the end of last year; and up RMB 195 per tonne, or 11.28%, year-on-year. Coke price was RMB1,983/tonne, up RMB12/tonne, or 0.61%, compared with the end of last month; down RMB471/tonne, or 19.19%, compared with the end of last year; up RMB79/tonne, or 4.15%, compared with the same period last year.

The price of steel scrap was RMB 2,745 per tonne, down RMB 10 per tonne, or 0.36%, from the end of last month; down RMB 244 per tonne, or 8.16%, from the end of last year; and down RMB 193 per tonne, or 6.57%, year-on-year.

From the international market, in June, CRU international steel price index was 197.5 points, down 5.3 points or 2.6 per cent; down 21.2 points or 9.7 per cent from the end of last year; a year-on-year decline of 33.5 points or 14.5 per cent.

Among them, CRU Long Products Price Index was 205.1 points, down 1.3 points or 0.6% from a year earlier; down 14.5 points or 6.6% year-on-year. CRU Plate Price Index was 193.7 points, down 7.3 points or 3.6% from a year earlier; down 19.4 points or 9.1% year-on-year.

Sub-regionally, in June, the North American steel price index was 225.8 points, down 14.7 points, or 6.1 per cent; European steel price index was 214.5 points, down 3.2 points, or 1.5 per cent; Asian steel price index was 171.4 points, down 1.0 points, or 0.6 per cent.

That week, China's steel price index in the previous week ushered in a restorative rise fell again, and hit a new low since the beginning of this year, the main reason is still the market into the traditional demand off-season, coupled with the recent increase in rainy weather in the southern region, a number of floods, further suppressing the release of demand, resulting in the market supply exceeds demand situation more obvious. From a comprehensive point of view, steel prices in the short term will continue to maintain the weak operating trend of shock.