- Domestic market shows gradual recovery with slower inventory build
- Export activity focused on East Asian market amid uncertain global demand
Chinese billet prices remained unchanged d-o-d at RMB 2,970/t ($431/t) on 16 March, as the domestic market showed gradual recovery with slower inventory accumulation following around 2% production cuts by mills. Raw materials remained firm, with iron ore prices staying above RMB 800/t ($116/t) at major ports, while coke prices were largely stable.
Meanwhile, SHFE rebar futures declined by RMB 2/t ($0.3/t) d-o-d to RMB 3,140/t ($455/t). Export market conditions remained largely unchanged, although some trading interest emerged from far-ocean markets, while demand from the Middle East remained subdued.
Market insiders said the weaker CNY is starting to weigh on Chinese export offers. With the yuan easing to around CNY 6.9 against the US dollar, billet export indications were heard near $455/t FOB.
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