Xinhua Shanghai November 10 (Reporter Li Rong ) domestic steel prices rose slightly for the second consecutive week , construction steel is particularly ” eye-catching .” However, if there is no demand later, price will return to consolidation pattern .

According to the well-known steel information organizations “My iron and steel” to the latest market report , last week , the domestic integrated steel price index edged up 0.98 percent . This is the second consecutive week of gains in steel prices . Pressure is not too much around the steel stocks , some part of the steel market had not improved specifications shortage phenomenon , coupled with billets, iron ore and other raw materials prices also rose slightly , thereby steel spot market prices are still up, week or expanded construction steel is particularly ” eye-catching .” But most worried about is the market demand for the release on the amount of difficult matches .

According to analysis, the sheet market, the overall price is still rising . Plate prices Xianyanghouyi , indicating weak overall pattern has not changed , Shanghai , Guangzhou, and other markets are still 10-90 yuan per ton, the weekly decline . Those reflected in the market , weekly temporary rise, prices immediately fell, ” quotations , businesses shipments becomes difficult ,” which have a certain confidence in the merchant blow . Hot rolled coil market rebound, Shanghai , Guangzhou, Hefei and other markets 10-80 yuan per ton, the weekly gain . Problem also lies in the demand side : Downstream demand procurement , the market traded more general. In the ” high-yield , low demand,” in the context of the business for the afternoon mentality tends to be cautious.

In the construction steel market, the overall price of one week rose 1.3 percent. Shanghai , Guangzhou, Beijing and other leading markets as well as most of the country t price weekly gain mostly concentrated in the 10 to 150 yuan between . Prices, the market acceptance in general. Market who said that after a long period of weak run , the market rebound in demand . “But the reality is difficult to effectively deal with , which is really a frustrating thing .”

(Reuters) – South Korea’s main KOSPI share index was up 0.9 percent at 1,898.04 as of 0107 GMT.

The following stocks were on the move:

**STEELMAKERS RALLY ON PRICE HIKE REPORT**

POSCO and other South Korean steelmakers rallied, buoyed by a media report that Japan’s Nippon Steel & Sumitomo Metal Corp and Toyota Motor Corp have agreed to raise steel prices, boosting hopes of a recovery in the sector.

Nippon Steel also rallied, after the Nikkei said Japan’s top steelmaker will raise steel sheet prices by about 10 percent for April-September as the yen falls.

“The report has reinforced hopes that other steelmaker in the region will be able to follow suit in raising prices,” said Cho Kang-un, an analyst at Shinyong Investment & Securities.

“Chinese steel prices have been rising almost every day in July, although questions remain whether the rebound will be sustainable” Cho said.

($1 = 1118.9250 Korean won) (Reporting by Hyunjoo Jin; Editing by Anand Basu)

Bloomberg reported that Chinese steelmakers including Hebei Iron & Steel Group and Jiangsu Shagang Group Co joined their Japanese peers in raising prices after Premier Li Keqiang signaled China may support economic growth.

According to its website, Shagang, the nation’s biggest non state owned mill, raised steel wire prices on July 21 by as much as CNY 100 (USD 16) a metric tonne. It was the Zhangjiagang, Jiangsu province based steelmaker’s second increase this month. Hebei Steel, China’s biggest producer, raised some steel sheet prices by as much as CNY 100 for August delivery after cutting them a month earlier.

China, the world’s largest producer and consumer of steel, will seek to keep economic growth, employment and inflation within limits, avoiding “wide fluctuations,” Li said July 16. He said at a recent meeting with economists 7% is the “bottom line” and the nation can’t allow growth to fall below that, the Beijing News reported.

Source – Bloomberg

According to statistics from China Iron and Steel Association, 86 large and medium-sized steel mills had a combined profit of CNY 11.276 billion in the first nine months of this year. They had a profit of CNY 3.266 billion in September, hitting a year to date high.
In the first half of this year, steel mills are wandering on the verge of deficit as their profits are squeezed by weak demand and low price. As of the end of June, 2013, China’s 86 large and medium-sized steel mills had a combined profit of 2.267 billion yuan and average sales profit was merely 0.13%. However, they are out of the red in July and August after embracing a round of rebound. Steel price keeps dipping since September and the increase in profit should be attributed to benefits from non-steel business.
Steel inventory of China’s large and medium-sized steel mills totaled 13.788 million tonnes in middle October, a rise of 2.12%. It was only inferior to the higest level of 14.51 million tonnes in middle March.
China steel market might continue vulnerable fluctuation in the fourth quarter of this year as inventory of key steel mills and crude steel production sustains high on weak demand.
Source – www.steelhome.cn/en
China steel information centre and industry database

Thursday, 07 Nov 2013

Reuters reported that spot iron ore scaled a two month high as recent gains in Chinese steel prices encouraged producers to pick up cargoes of the raw material, setting it up to test the USD 140 per tonne level last seen in August.

Ore with 62% iron content for immediate delivery to China’s Tianjin port rose 0.7% to USD 136.80 per tonne the highest since September 5. The price has traded below USD 140 since mid August.

An iron ore trader in China’s eastern Shandong province said that some Chinese mills are coming back to the market, especially those from the northern part, they need to stock up for winter. China’s domestic production of iron ore slows during cold weather, making mills more reliant on imports.

The Shandong trader said that “I think it’s possible we can hit USD 140 again although most traders are in wait-and-see mode on this weekend’s plenary meeting.”

Source – Reuters

Beijing time on November 7 evening news, the European Central Bank announced that eurozone benchmark interest rate (main refinancing operations rate) decrease by 25 basis points to 0.25 percent.

The ECB cut interest rates was unexpected, according to a Bloomberg News survey, after only a few (less than 4%) Market participants expect this.

The following is the statement of ECB: ECB At today’s meeting, the Board made ​​the following decisions:

Euro system’s main refinancing operations rate decrease by 25 basis points to 0.25 percent, begins to take effect from 13 November 2013 settlement operation.

Marginal lending rate decrease by 25 basis points to 0.75%, also effect from November 13.

Marginal deposit rates still remain unchanged at 0.00%.