Steel Traders Sold Goods Actively on Falling Prices

SHANGHAI, Apr. 16 (SMM) – Steel prices in both futures and electronic trading markets fell on Monday, with futures prices down RMB 92/mt to RMB 3,738/mt, and prices in electronic trading platform down RMB 73/mt. The most active contract closed at RMB 3,716/mt. The decline in the futures market was due mainly to the plunging prices in foreign market last Friday. Price in Shanghai fell RMB 20-50/mt to RMB 3,820-3,830/mt, while those in Lecong were down RMB 20-30/mt to RMB 3,860-3,870/mt. Prices in Tianjin slipped RMB 20/mt to RMB 3,660-3,700/mt.

Large traders became aggressive in selling goods due to falling prices. Steelease has learned that a Shanghai-based trader sold 5,000 mt of goods from Ningbo I/S in the Ningbo market at RMB 3,770/mt, RMB 50/mt lower than local market price. Many traders also expressed the intention for depleting inventories in case of further declines. Besides, they also hoped to obtain more rebates and expected significant price cuts by steel mills hot-rolled coil prices for May are expected to be announced.