- Inventories decline but fail to support prices
- Stable raw material prices limit downside
Chinese billet prices decreased by RMB 10/t ($1/t) d-o-d to RMB 2,930/t ($434/t) on 13 August, while SHFE rebar futures fell by RMB 8/t ($1/t) to RMB 3,002/t ($445/t). The decline reflected sluggish downstream demand and limited speculative buying, despite a 246,300 t drop in social steel inventories ahead of expected September demand.
Routine mill production and limited maintenance activity also kept supply stable. Meanwhile, Chinese billet export offers remained stable at around $453/t FOB, with subdued export activity and unchanged export indices limiting price movement. Relatively stable iron ore prices and support from coking coal also provided some support.
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