Chinese steelmakers refuse to deliver January futures cargoes to stem price collapse

November 12, 2021 / www.metalbulletin.com / Article Link

Some Chinese steelmakers are refusing to deliver January-contracted steel cargoes bound for Shanghai Futures Exchange warehouses to stem falling prices.

Some steel mills in northern China said on Wednesday November 10 they will not deliver cargoes for January futures positions because their prices are too low compared with spot physical prices.
The most-traded January rebar futures contract closed at 4,246 yuan ($664) per tonne on Wednesday, down by 1,562 yuan per tonne (27%) from 5,808 yuan per tonne from a month earlier.

The futures price was much lower than the physical domestic spot prices that...

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