- Muted exports, tariff uncertainty weigh on prices
- Iron ore weakness drags overall steel sentiment
Chinese billet prices decreased by RMB 50/t ($7/t) to RMB 3,010/t ($444/t) on 28 May from RMB 3,060/t ($451/t), while rebar futures edged down by RMB 1/t (less than $1/t) to RMB 3,157/t ($466/t) from RMB 3,158/t ($467/t) on 25 May. The decline was mainly attributed to weak underlying steel demand and slower inventory digestion in the domestic market amid relatively stable steel output levels. Market sentiment also remained cautious following the sharp correction seen earlier in the week, when most local steel prices fell by RMB 30-50/t ($4-7/t) amid panic selling.
Additionally, softer iron ore prices, which touched a one-month low during the week, further weighed on sentiment, although stronger coke prices continued offering some cost-side support. Export activity also remained subdued, with several overseas destinations entering holiday periods, while ongoing negotiations related to new EU tariffs on Chinese steel exports continued to create uncertainty in the export market. Meanwhile, billet export offers from China were heard at around $476/t FOB.
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