China: Billet, rebar prices decline amid weak seasonal demand, rising inventories

• Lower coke prices reduce cost support for billet prices
• Billet export offers fall by $2/t amid cautious buying

Chinese billet prices fell by RMB 10/t ($1/t) d-o-d to RMB 2,950/t ($436/t) on 28 July, while SHFE rebar futures declined by RMB 9/t ($1/t) to RMB 3,060/t ($452/t). The decline was mainly attributed to weak seasonal steel demand amid high summer temperatures, with daily rebar trading volumes remaining subdued at around 85,000 t.

A slight increase in social steel inventories also pressured prices as traders sought to clear stocks through export channels. Chinese billet export offers also eased by $2/t d-o-d to around $458/t FOB amid weak overseas demand. Meanwhile, lower coke prices reduced raw material cost support, while cautious market sentiment continued to weigh on billet prices.