Two bond issuances just 20 days apart may be the most frequent bond issuance period since the establishment of China Railway Corporation (hereinafter referred to as CRC).

　　On August 14, CRC will issue railway construction bonds totaling 20 billion yuan, with the proceeds to be used for the construction of under-construction lines such as the Lanzhou-Xinjiang Second Double-Track, the Shanxi Central-South Railway Corridor, and the Hangzhou-Changsha Passenger Dedicated Line.

　　This is the second tranche of railway construction bonds issued since the establishment of CRC. The first tranche was issued on July 24, 2013, also amounting to 20 billion yuan. Previously, CRC and its predecessor, the Ministry of Railways, had issued one tranche of medium-term notes and one tranche of short-term financing bonds, each worth 20 billion yuan, this year. That is to say, as of now, CRC has issued 80 billion yuan of railway bonds this year.

　　However, this is still a considerable distance from the bond issuance task CRC needs to complete this year. This year, the National Development and Reform Commission approved a railway construction bond issuance quota of 150 billion yuan for CRC, and CRC also obtained a medium-term note quota of 60 billion yuan from the National Association of Financial Market Institutional Investors. That is to say, in the remaining period of this year, CRC can still issue 110 billion yuan of railway construction bonds and 40 billion yuan of medium-term notes.

　　Baosteel Raises September Ex-Factory Prices; Steel Industry May Usher in 'Golden September and Silver October'

　　Baoshan Iron & Steel Co., Ltd. announced on the 13th that it will generally raise prices for hot-rolled products by 150 yuan/ton in September; other products such as cold-rolled and electrical steel will all be generally raised by 120 yuan. This is Baosteel's first price increase since May, confirming the earlier market price rise by a major steel mill and also reflecting optimistic expectations for the 'Golden September and Silver October'.

　　Baoshan Iron & Steel Co., Ltd. yesterday released the 'Notice on Adjusting Domestic Futures Sales Prices for September 2013'. The price adjustment notice stated that among hot-rolled products, except for BS600MC which remains unchanged, 1E0650 will be raised by 250 yuan/ton, and all other products will be raised by 150 yuan/ton; prices for CQ and DQ grade products and non-automotive steel from directly affiliated plants will be raised by 120 yuan; prices for aluminum-zinc coated, color-coated, and electrical steel will be generally raised by 120 yuan/ton.

　　Baosteel's price adjustments this year have basically lagged the market by one month. Since July, the steel market has strongly rebounded, sweeping away the gloom since March. Especially in the last ten trading days, the main contract price on the Shanghai Futures Exchange rose from 3,418 yuan to 3,760 yuan, adding market confidence in the short term. Baosteel's price adjustment pace was: cuts in June and July, no change in August, and following the rise in September. Analysts believe that August is the off-season for steel, and Baosteel's decision not to raise prices shows a cautious attitude. As for following the rise in September, on the one hand, it confirms the market price increase, and at the same time, with the arrival of 'Golden September and Silver October', steel will enter the traditional peak season, so a price increase is also reasonable.