SHANGHAI, May 15 (SMM) – Steelease earlier reported that some hot-rolled coil producers opted post-delivery settlement in April as a new trade pattern with steel traders, so as to ease the order pressure in May. However, some gave up the pattern in May and still preferred price cuts and rebates for future transactions, but a few steel mills still reported difficulties in selling goods during May. As such, a mill in northeast attempted to settle after delivery, and began delivering 50,000 mt to east China market on May 5, with these goods expected to arrive in Shanghai and Ningbo in the latter half this month.

 

Under such circumstances, hot-rolled coil producers face persistently high output and poor sales at present, and low-prices goods continued flowing into the markets. Besides, less than 50% of goods arriving in the markets earlier were sold, and low-priced resources will increase with more mills attempting to adopt the new pattern for settlement. In this context, hot-rolled coil prices should remain low through May.