After raw material it was turn of finished market to take the hit on weak cues. Weekend economic data did the damage as the prospects of end use demand diminished.

Chinese exports sank 18.1% from a year earlier in February, much weaker than the 5% increase that was expected by economists, and following a healthy 10.6% expansion in January. China posted a 23 billion deficit on Saturday; a sharp drop from the 31.9 billion surpluses recorded in January.

Damning economic data raised serious concern about the economic growth of China. 2014 GDP projection of 7.5% looks unachievable in the present scenario. HSBC PMI results tell us that China’s industrial sector (down to 48.5 from 49.5 prior) continues to contract, the industrial sector makes up 37 percent of the economy.

Fixed asset investment levels for the year are targeted at only 17.5 percent, the lowest level for a decade, compared to about 19.3 percent last year.

Primarily borne out of concern for crashing export PBOC China set the yuan reference rate at 6.1312, up 111 points over the weekend.

Although market had been holding on at low level price levels collapsed in sudden crash by 1% dousing all hopes of turnaround. Crumbling domestic price levels spell decline in export levels thereby upping the ante on other sources leading to price cut.