SHANGHAI, May 23 (SMM) – Hot-rolled coil prices fell noticeably on May 22, with Shanghai market reporting the lowest price of RMB 3,480/mt across the nation. Prices were RMB 3,460-3,480/mt in Tianjin, and RMB 3,560-3,570/mt in Lecong. Price gap between Shanghai and Tianjin narrowed from RMB 200/mt to RMB 0/mt, as large traders increased purchases after steel mills adopted new trading pattern. 

 

Inventories in Shanghai market kept rising from late April to mid-May, while inventories in Tianjin and Wuhan fell sharply. With the onset of low-demand season in manufacturing this month, steel demand started weakening and steel prices began falling. That, combined with the ample supply in Shanghai, caused traders to lower prices for sales. 

 

However, the new trading pattern will no longer be adopted by some traders and mills, and large traders, which will help ease the oversupply in Shanghai and benefit steel prices in the market.