- Sluggish construction activity pressures rebar prices
- Softer coke costs reduce raw material cost support
Chinese billet prices declined by RMB 20/t ($3/t) d-o-d to RMB 2,950/t ($435/t) on 13 July, while SHFE rebar futures fell by RMB 42/t ($6/t) to RMB 3,054/t ($451/t), reflecting weak market sentiment and seasonal demand. Domestic steel prices came under pressure as sluggish construction activity and weaker regional equity markets weighed on confidence. Mills also started reducing production amid shrinking margins, raising concerns over a broader cost-cutting cycle.
Although Chinese billet export offers edged up to around $460/t FOB, overseas buying remained limited, with mills testing buyer acceptance while HRC export offers stayed under pressure. Expectations of lower coke prices, despite reduced iron ore deliveries, further eased raw material cost support and reinforced the softer pricing trend.
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