- Declining steel inventories in some regions support prices
- Improved EAF margins support production activity
Chinese billet prices increased by RMB 10/t ($1/t) d-o-d to RMB 2,950/t ($438/t) on 17 August, while SHFE rebar futures rose by RMB 1/t to RMB 3,016/t ($447/t). The increase was supported by improving domestic buying activity, with rebar trading recovering to around 100,000 t/day and some regions reporting inventory reductions. Improved EAF margins also encouraged production.
Meanwhile, Chinese billet export offers were heard at around $448/t FOB, with a weaker yuan making export offers more challenging to negotiate.
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