- Coking coal futures surge post major mine accident
- Steel demand remains cautious despite higher prices
Chinese billet prices increased by RMB 20/t ($3/t) d-o-d to RMB 3,060/t ($451/t) on 25 May, while rebar futures increased by RMB 13/t ($2/t) to RMB 3,158/t ($465/t), mainly supported by a sharp rise in coking coal futures following a major coal mine accident in China. Market participants expected tighter coal supply and stricter safety inspections, which pushed raw material and steel futures higher despite unchanged underlying steel demand conditions.
Physical steel prices also increased by around RMB 20-30/t in line with the futures market, while billet export offers from China were heard around $476/t FOB amid rising production cost support and volatile market sentiment. However, market participants remained cautious as actual steel demand showed limited improvement.
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