China: Billet prices inch up as firm raw material costs offset rising inventories

• Mild improvement in domestic consumption supports prices
• Rebar export market remains weak due to high freight costs

Chinese billet prices increased by RMB 10/t ($1/t) d-o-d to RMB 2,950/t ($430/t) on 11 March, supported by a slight improvement in domestic consumption despite rising social inventories. Raw materials remained firm, with iron ore and coke prices gradually increasing as some mills began rebuilding inventories for upcoming production.

Meanwhile, SHFE rebar futures rose by RMB 11/t ($2/t) d-o-d to RMB 3,115/t ($454/t). However, export activity remained subdued as high freight costs led to the rejection of most bids, while mills continued to lift their export base prices following the Lunar New Year.