- Production cuts, stable social inventories limit drop
- Stable raw material prices fail to offer cost support
Chinese billet prices declined by RMB 10/t ($1/t) d-o-d to RMB 2,980/t ($440/t) on 20 July, while SHFE rebar futures fell by RMB 19/t ($3/t) to RMB 3,096/t ($457/t), reflecting weaker market sentiment at the start of the week. Although stable social inventories and production cuts by mills provided some support, speculative buying remained limited, and concerns over the sustainability of downstream demand weighed on sentiment.
Stable raw material costs and additional production stoppages at EAF mills in southern China failed to offset demand concerns, prompting traders to adopt a cautious approach and reduce positions in steel futures.
Export activity remained largely unchanged, with Chinese billet export offers heard at around $465/t FOB, stable d-o-d. Notably, China’s slab exports reached a record high in June.
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