Pledged Hot-Rolled Coils Sold in Shanghai with Prices Low

SHANGHAI, Apr. 25 (SMM) – Some hot-rolled coils were seen in Shanghai market April 24 with prices offered low at RMB 3,600-3,680/mt. There was suspicion that these goods were previously pledged.

As most loans became due for repayments in March, Steelease believes the last batch of goods involved in the “repeated pledge” cases will be seen in late March or early April, and market will be little affected. The issue was reported from several warehouses in late March, but limited resources and traders were involved. Market players paid great attention to this batch of goods as the resources were suspiciously pledged earlier. However, as it was unclear who has the right to these goods, purchasers may go through complicated procedures.

In addition, other traders also obtained goods that had been pledged before, and started selling those resources, but market was not greatly influenced given the limited volume. Nevertheless, buyers are advised to be cautious and get detailed information before purchasing.