By staff reporter Zhang Boling

(Caijing.com.cn) Steel traders have urged large mills to cut their prices to reflect the market conditions, Caijing learned from a trader's conference on Sept. 20.

Steel prices have fallen since August and many traders have lost money on products purchased under contract at higher than current market prices.

The contract price of cold-rolled steel for October delivery from Baosteel, for example, is 6,300 yuan per ton, compared with a market price of about 5,600 yuan per ton, Liu Changqing, chairman of Beijing Lange Baiziwan Steel Market, said.

Liu Yong, general manager of Anhui Huishang Metal Co., said his company bought 90 percent of the steel for a new project though the local markets.

Meanwhile, steel mills should guarantee traders a discount on the market price, Xu said.

A large proportion of the steel produced by large mills is sold by traders, who resell it on the local markets.

Li Jianshe, marketing manager with steelmaker Magang Group, said steelmakers always consider their own interests first when the market deteriorates.

Meanwhile, the fourth quarter will be the most difficult time of year for domestic steel mills because weak demand will be unable to absorb fast-growing output and inventories, according to the China Iron and Steel Association.

Prime steel output grew for seven consecutive months to August, reaching a record 52.3 million tons in the month, far above the 40.4 million tons in February. In early August, prices stalled abruptly after a four-month rebound as ballooning output began to outpace demand.