SHANGHAI, Apr. 15 (SMM) – Many steel mills and traders adopted new trade mode for hot-rolled coil and plate sales last week. Steelease data show that orders under such new trade mode have been made in major markets, including Wuhan, Xiamen, Quanzhou, Lecong, Shanghai, and Tianjin, with goods are expected to be delivered in late April or May.

20,000 mt of goods are expected to arrive in Quanzhou and Xiamen in late April. 15,000 mt will arrive in Wuhan in late April and 5,000 mt will arrive in May. Shanghai will see 30,000-50,000 mt arriving before mid-April, with some 100,000 mt gradually delivered to warehouse later. 10,000 mt of resources from Chengde I/S sent to Shanghai have been sold out, and negotiations are ongoing for resources from Liuzhou I/S. 40,000 mt of goods will enter the Tianjin market in late April or May, while 15,000 mt will be shipped to Lecong in May.

In addition, 70,000 mt of resources in northeast China are up for sale at present. Thus, steel mills have started destocking, but prices will unlikely fall in the short term as demand is expected to recover in April and May and as inventories at downstream buyers and traders were low