The hottest steel trade transaction in the Yangtze

The steel trade in the Yangtze River Delta has been stagnant for several times, and the loan litigation has increased sharply

the steel trade in the Yangtze River Delta has been stagnant for several times. The loan litigation has increased sharply

China Construction machinery information

Guide: on the morning of October 18, the Shanghai Pudong New Area court will hear three consecutive cases of financial loan contract disputes between banks and steel traders. Since August this year, Shanghai has held hearings on loan disputes between banks and steel trading enterprises every week. Since October, similar cases have been heard almost every day

due to a large number of lawsuits, a large number of steel products have been seized, some even multiple seizures. At present, the steel trade in Shanghai and even the Yangtze River Delta has almost stalled, and more and more steel trading enterprises are facing the pressure of bankruptcy, including banks and guarantee companies. "See, at the end of the year, when banks collect money, more steel trading enterprises will have problems." Said the general manager of a steel trading enterprise

loan litigation increased sharply

at 9 a.m. on October 18, it was originally the time for the trial of the dispute over the financial loan contract between Ping An Bank (the former Shenzhen Development Bank) and Shanghai Xiba metal materials Co., Ltd. in Jinan testing machine detection error court. However, the defendant Shanghai Xiba metal materials Co., Ltd. refused to sign the notice of response and finally failed to open the court

"if the enterprise still wants to operate well, how can it not even respond to the lawsuit? In such a situation, the bank is basically impossible to get the money back." Relevant people said

only one hour apart, the lawsuit between Ping An Bank and Shanghai dongkuo Steel Co., Ltd. will also be heard. This time, East expansion steel sent people to answer the lawsuit. However, the court trial process did not have the expected words, but the staff of Ping An Bank discussed the mediation plan with the judges

"dongkuo steel owes us more than 10 million yuan. Their steel is still in the warehouse, and the goods on the list are all there. As long as they sell the steel, they can pay back the money. And we are a seal (that is, seal it first)." Employees of Ping An Bank seemed to win when exchanging information in court

but they also have to admit that the current situation is in total chaos. There are several groups of people claiming rights for a batch of steel, including banks, warehouses and even listed companies, and almost all of them have sealed up the steel through the court. The same batch of goods is likely to be sealed up by different courts for the second time (that is, the second time) and the third time... No one can tell who this batch of steel is. Whether the steel can be brought out of the warehouse is the biggest problem at present

in fact, since August, the number of cases of banks suing steel trading enterprises accepted by courts at all levels in Shanghai has increased significantly. Among them, Ping An Bank, Minsheng Bank, industrial bank, Everbright Bank, China CITIC Bank, etc. are more involved in litigation. However, many cases cannot be heard because steel traders (mostly defendants) refuse to sign the notice of response. Some steel traders privately said that they have been actively negotiating with the bank and are currently unable to repay the bank in time. As the number of uses increases, they hope to extend the repayment time limit

it is not only banks that are deeply involved in the steel trade litigation, but also steel mills and companies specializing in storage and logistics. Even Masteel, a large steel mill, decided to file a lawsuit with the court because the 800 million yuan loan could not be recovered

a steel trading practitioner in Hangzhou told China Securities Journal that his steel trading enterprise also had a steel pledge dispute with a steel trading trader involved in the case. This time, he made a special trip from Hangzhou to Shanghai to attend three court trials on steel trading loans in one day. Through listening to the trial, he wanted to see whether the steel trading enterprise involved really had steel in its hands, how much it had, which warehouse it had, and how to preserve it. "In the afternoon, I will go to Shanghai Yangpu court to attend another court trial. These disputes resorting to the court may be just the tip of the iceberg. The problems of the whole industry and the amount that may be involved may be much larger than those that have been made public." The person said

"this is like a 'run on Steel' in the steel trade, which destroys the operation order of the whole industry." A steel trader in Hangzhou believes that

now the steel trade in Shanghai and even the Yangtze River Delta has almost stalled. A large number of steel stocks were seized by the court and could not be circulated due to unclear ownership. Steel traders dare not buy Steel - they are worried that the steel they buy is "stolen goods" that have been sealed up by the court. Even if steel is purchased, there may be hidden risks in the invoice issued by the other party - if the seller is involved in the case, the invoice cannot be deducted from value-added tax. This means that buyers have to pay 17% value-added tax, causing heavy losses

Yangpu District, Baoshan District and other places in Shanghai are areas where steel traders gather. The big cypress area in Yangpu District is now deserted, and more than 60% of the parking spaces in front of the office building are empty. There is no bustling scene in the past

"steel trading enterprises that went wrong last year are generally small-scale. This year is different. Everyone with a business scale of hundreds of millions has problems." Said the general manager of a steel trading enterprise in Shanghai

more and more steel traders have closed down and failed to repay bank loans on time, which has affected the normal business development of banks. A relevant person of a joint-stock bank admitted that due to the problems of steel trade, the bank's business statements this year are "very ugly", and the current pressure on the leaders of sub branches and branches at all levels of the bank is very great

it is said that as of September this year, the loan balance of Shanghai steel trade was about 200billion yuan, including non-performing loans of more than 30billion yuan. The data has not been confirmed by the relevant regulatory authorities. The latest data from the Shanghai headquarters of the people's Bank of China showed that the loan balance in Shanghai exceeded 4trillion yuan for the first time at the end of September

Suzhou calls for the suspension of balance mortgage

in the Yangtze River Delta regions such as Wuxi, Suzhou and Hangzhou, the non-performing loan problems caused by the steel trade industry should not be underestimated. Local regulatory authorities have issued response policies

the Suzhou municipal government recently issued the opinions on the implementation of balance mortgage registration in the mortgage registration of housing ownership and land use right in Suzhou. If it is stipulated that the balance of house ownership and land use right is mortgaged, the amount of mortgage evaluation or pricing shall be consistent with the amount of evaluation or pricing at the time of the first mortgage, and the amount of creditor's rights guaranteed by the balance mortgage shall not exceed the balance of the value of the mortgage minus the sum of the amount of creditor's rights guaranteed

"this is basically a call to stop the balance mortgage. The regulatory department privately explained to us that because there were too many bad debts in steel trade recently, we had to suspend the balance mortgage business." The person in charge of an investment company said. The so-called balance mortgage loan, for example, the price of a real estate is 1million yuan, and the owner has applied for a mortgage loan when purchasing the real estate. Five years later, the price of the property rose to 3million yuan, and the owner can apply for a mortgage loan with a balance of no more than 2million yuan at most. When the market is good, many steel trade business owners use this method to obtain bank loans

how to deal with the non-performing loans of steel trade, which are often "long bonds", is probably a more thorny problem. According to a banker in Shanghai, the bank has received a notice from the relevant departments requiring the bank to continue to provide loans to the existing steel trade while not increasing the steel trade loans

"that is to say, if a steel trader has borrowed 10million yuan from our bank, as long as she can still repay the interest, we will continue to lend 10million yuan to him after the expiration. But in August and September this year, our bank has already failed to collect tens of millions of interest, and it is difficult to recover the principal of billions of yuan. What do you say?" A relevant person of a joint-stock bank said