China: Billet prices, SHFE rebar futures decline on weak steel sentiment

• Lower raw material prices put pressure on steel market
• EAF mills cut output amid persistent operating losses

Chinese billet prices declined by RMB 20/t ($3/t) d-o-d to RMB 2,950/t ($434/t) on 1 July, while SHFE rebar futures fell by RMB 21/t ($3/t) to RMB 3,067/t ($451/t). The decline was driven by a weak start to July, with domestic steel prices easing by RMB 10-20/t ($1-3/t), subdued export demand, and lower export offers from Vietnamese mills.

Falling raw material prices and a 5% reduction in EAF mill operating rates due to losses further weighed on sentiment, while a stronger US dollar and expectations of higher US interest rates added pressure to commodity markets.