Steelhome website publishes monthly report of eight kinds of steel and raw material products including construction Steel, HRC/CRC, medium plate, stainless steel, iron ore, coke, scrap and ferroalloy each month. Also, our website published the Monthly Report on China Steel Market for December and the Outlook on December 2011, welcome to read the summary below and the full artical at Monthly Report on China Steel Market for December 2011 (http://newsen.steelhome.cn/2012/01/05/n572488.html). If you are interested in SteelHome Monthly Report, please contact Info@steelhome.cn, or dial 86-21-50585358/50585368/50585733.

China steel market is featured by stable performance in January 2012. Affected by Chinese Lunar New Year holiday, the real transaction days are fewer than previous months while the pressure for loans repayment is higher in the given time. Due to sustained low crude steel output, domestic steel supply kept falling year on year.

As a matter of fact, the market demand in running month doesn’t totally wake up yet, and the steel production still stands at a comparatively low level despite the slight recovery. Given the improved money supply, small increment of social steel inventory following Spring Festival and better market sentiments was seen in January, China steel price is expected to experience an upswing trend in February, 2012.

Summary:

Monthly Report on China Medium Plate Market for January 2012

China’s medium plate market posts a small-ranged adjustment in January. Prices at key markets vary, with a range of CNY20-50 per tonne. Average daily output for December 2011 is 166,300 tonnes, descending 6.61 percent from the prior month and marking the one-year low. The capacity release for medium plate enterprises is contained in January; slab purchasing producers suspend production around the Spring Festival, hence market supply continues dropping even though mills in East China keep producing as usual.

China’s shipbuilding accomplishment in 2011 is 76.65 million dead weight tons (DWT), up 16.9 percent year on year. Handhold orders at the end of the year is 149.91 million DWT, heading down 23.5 percent compared with the year end of 2010, and the downstream demands sustain soft.

The planned production for February in the north part of China increases; the production limitation shows a favorable turn in East China, hence domestic production is hopefully to improve. More orders are received by large and medium-sized enterprises in February, and it is anticipated that price policies are mainly to keep stable with some lifts.

I China medium plate prices adjust moderately in January

II Analysis on China medium plate market in February, 2012

1 China medium plate production moves down in December, 2011

2 Analysis on China medium plate import & export

3 Downstream sectors

4 South Korean and the U.S.

5 Price policies of medium plate manufacturers in January

6 China’s medium plate production in February slightly moves up

Table 1 SteelHome China Steel Price Index (SH_CSPI) on December 31

Table 2 Medium plate price in major Chinese markets in December

Table 3 China medium plate production during January- December, 2011

Table 4 Common carbon medium plate ex-works prices adjustment in January

Table 5 Container board ex-works prices adjustment in January

Table 6 Shipbuilding plate ex-works prices adjustment in January

Graph 1: SteelHome China Steel Average Price during Jan.31, 2011-Jan.31, 2012

Graph 2: China Cumulative Plate Production by Month in 2010-2011

Graph 3: China Plate Production by Month in 2010-2011

Graph 4: China Plate Impo & Expo in 2010-2011

Graph 5: China Medium Plate Cumulative Resource Supply in 2010-2011

Monthly Report on China Stainless Steel Market for January 2012

Prices of 400 series stainless steel in January 2012 presented a distinct increase, while that of 300 and 200 series stainless steel proved stable.

In January, average price of nickel advanced substantially and that of high carbon ferrochrome run high slightly. Stimulated by the price hike of raw material, Taigang Stainless Steel up revised their stainless steel future price with actual executive price a little higher than that of the current market price.

During China’s Spring Festival holiday, the demands performed fatigued with inventory augmenting largely. International nickel prices in the meantime remained a strong momentum, and thus majority mills and traders see positive of later market with caution.

It is predicted domestic 300 series stainless steel market in February is likely to vibrate upward.

I 300 series stainless steel prices ascended largely in January 2012

II Analysis on China Stainless Steel Market for February 2012

1 Supply/demand

a) Leading Chinese stainless steel manufacturers operate at full loads

b) China stainless plate (strip) export in December plunged significantly month on month

c) China stainless steel market will gradually recover in February 2012

2 Stainless steel metallics market

a) LME three-month nickel futures average price fluctuated upward in January 2012

b) China high carbon ferrochrome price increased slightly

c) Leading domestic stainless steel mills reduced ex-works price for February 2012

d) Stainless steel inventory at leading domestic markets in January mounted up substantially

Table 1 Stainless Steel Plate/strip Price at Chinese Leading Markets in January 2012

Table 2 Import and Export of SS Plate/strip in December 2011 (Quantity in 10000 tonnes)

Table 3 LME three-month nickel futures average price in January 2012

Table 4 Tisco ex-works price of stainless flats for February 2012

Table 5 Baosteel’s ex-works price for February 2012

Table 6 Stainless steel inventory at Wuxi markets

Graph 1 SteelHome China Stainless Steel Price Index (SH-CSPI-SS) in 2010-Jan, 2012

Graph 2 Stainless steel price at Wuxi on in 2010- January 2012

Graph 3 China CR stainless steel sheet impo/expo in 2010-Dec.2011

Graph 4 Impo/expo of China HR medium wide SS strip in 2010-Dec.2011

Graph 5 Impo/Expo of China SS plate (strip) in 2010- Dec.2011

Graph 6 LME three-month nickel futures closing price VS. inventory during 2009- January 2012

Graph 7 Stainless Steel Inventory at Wuxi City during 2009- January 2012