- Softer iron ore prices pressure raw materials
- Mills lower base prices more frequently
Chinese billet prices fell by RMB 20/t ($3/t) d-o-d to RMB 2,960/t ($442/t) on 8 October, while SHFE rebar futures declined by RMB 45/t ($7/t) to RMB 3,061/t ($457/t). Meanwhile, billet export offers slipped by $3/t d-o-d to $462/t FOB.
The declines were driven by a weak post-holiday market, with limited improvement in steel demand and social inventories rising by around 800,000 t. Physical steel prices fell by RMB 10-20/t, while mills lowered base prices more frequently amid rising cost pressures.
Softer iron ore prices and the first coke price adjustment since 1 October also weighed on raw material sentiment. Meanwhile, global economic uncertainty and pressure across commodities further dampened market sentiment.
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