China: Billet, rebar prices rise on firmer costs, sentiment

• Coke supply tightness supports Chinese steel prices
• Weaker dollar boosts Chinese steel market sentiment

Chinese billet prices increased RMB 50/t ($7/t) d-o-d to RMB 3,010/t ($448/t) on 24 August, while SHFE rebar futures rose RMB 27/t ($4/t) to RMB 3,066/t ($456/t). The upward move was supported by firmer raw-material costs, tighter coke supply and improving buying sentiment. A weaker US dollar and stronger global commodity sentiment also encouraged price gains.

Meanwhile, Chinese billet export offers increased by $4/t to $448/t FOB, reflecting firmer seller expectations and improved export sentiment. Increased HRC activity, particularly toward Turkey and South Asia, also provided additional support to Chinese steel prices. Although underlying demand remains uneven, stronger cost support is reducing the likelihood of a sharp near-term price decline.