- Billet export offers decline on poor demand
- China’s manufacturing PMI drops below 50 in July
Chinese billet prices declined by RMB 10/t ($2/t) d-o-d to RMB 2,920/t ($432/t) on 31 July, while SHFE rebar futures fell by RMB 10/t ($2/t) to RMB 3,004/t ($445/t). Chinese billet export offers also decreased by $4/t d-o-d to around $454/t FOB, reflecting weak overseas buying interest.
The decline was driven by deteriorating manufacturing sentiment after China’s official PMI fell to 49 in July, down 1.1 points and remaining below the 50-point expansion threshold, signalling continued contraction in industrial activity.
Weak seasonal demand, slower order collection, and mills lowering daily base prices by RMB 10-20/t to stimulate sales weighed on domestic market sentiment. Export activity also remained sluggish, with most offers failing to attract workable bids, while weaker iron ore and coke prices reduced production costs and reinforced expectations of further raw material price correction, piling pressure on billet prices.
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