China:  Baosteel to set higher Prices for October

Baosteel may lift its flat products prices for October'13 on improved demand in the steel sector.

China's Baoshan Iron & Steel (here in after referred to as Baosteel) will keep its prices of hot-rolled coil product same offering discount on them and may raise the prices of some other products for October bookings. 

Baosteel may raise prices of cold-rolled coils which is mainly used for making cars and appliances, by 100(USD 16.34) Yuan a tonne and scrapping a discount of 100 Yuan (USD 16.34) a tonne for hot-rolled coil, orders that it previously provided to dealers, said. The latest pricing moves by China's biggest steelmaker, watched closely by traders and analysts for clues on market trends, indicate its positive demand stance.

China, the world's biggest consumer of the alloy, has unexpectedly picked up ahead of traditionally strong consumption season in September and October, prompting mills to lift run rates in August. “The increase is modest, but sends a positive signal that the company expected demand to remain healthy in the near future rising and falling raw material costs have squeezed mills margins, forcing some to reduce output this month. Iron ore prices jumped 6% in August, compared with a 3.1% gain in steel prices. 

In 2012, Baosteel achieved steel output of 43.83 MnT and a total profit of RMB 10.4 billion, ranking the second largest among the world's iron and steel enterprises.