- October cargoes see selective export interest
- Tight coking coal supply supports steel costs
Chinese billet prices rose by RMB 20/t ($3/t) d-o-d to RMB 3,040/t ($453/t) on 4 September, while SHFE rebar futures increased by RMB 15/t ($2/t) to RMB 3,106/t ($463/t). In contrast, billet export offers fell by $6/t to $466/t FOB. The domestic market turned slightly firmer, supported by higher coke prices and tight coking coal supply. Social steel prices increased by around RMB 10/t, although market response remained slow. Mill profitability was only around 30%, a two-year low, keeping production changes limited.
Export activity remained stable, with some sellers offering October-shipment cargoes. A blast-furnace incident at a major Southeast Asian mill could also affect regional supply. Market participants are closely watching the next two weeks for clearer September demand signals ahead of the National Day holiday.
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