Huaikuang Modern Logistics Co, a Chinese steel trading company, said it defaulted on borrowings, highlighting concerns that non-payment problems would spread as the nation's economy slows.

Anhui Wanjiang Logistics Group, based in the city of Wuhu, disclosed the unit's default in a statement to the Shanghai Stock Exchange on Tuesday, without giving any more details. The company cited banks' unwillingness to extend loans to the steel industry as the reason for the nonpayment.

Chinese steel traders are grappling with loan repayments after prices for the metal in the country slid 27 percent this year as the slumping property market exacerbates industry overcapacity.