TEX reported that the China's markets of steel products after National Day showed price rise in various steel products, and looking at hot rolled steel coils, those prices showed a rise by more than CNY 100 in every areas.

According to information released lately by the China Iron & Steel Association, HR coil prices of each area from the last week of September rose by CNY 140 to CNY 3,840 in Beijing, by CNY 120 to CNY 3,850 in Shanghai, by CNY 190 to CNY 4,000 in Guangzhou and also by CNY 160 to CNY 3,900 in Tianjin respectively. In every areas, they increased by CNY 60 to CNY 160 per tonne from the level of the 2nd week in August 2012.

Price rise is particularly high in steel plates. In Beijing, those prices increased by CNY 1,220 to CNY 4,750 from those in the last week of September 2012 which recovered to the level to exceed HR coil prices after a long time. In Shanghai as well, they rose by CNY 940 to CNY 4,550, by CNY 800 in Guangzhou and by CNY 1,010 in Tianjin.

Prices of cold rolled steel sheets rose by CNY 200 in Guangzhou while they did by CNY 50 in Beijing, by CNY 30 in Tianjin and by CNY 100 of which upturn momentum was, however, still weak.

Tangshan Iron & Steel Group raised its prices of HR coils by CNY 100 while other Chinese mills seem to be in a state of a wait and see stance. As the market prices rose slightly, there is a possibility that import of iron ore is increasing in China, and operation of suspended facilities is thought to have been resumed. If so, no matter how there is price revision due to being too much to drop, large price recovery may not be expected so much.

Source - TEX Report Limited

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