China: Billet, rebar prices ease as softer sentiment offsets firm costs

• Firm raw material costs continue to support steel prices
• Stronger export demand lifts billet offers to $472/t FOB

Chinese billet prices fell by RMB 10/t ($1/t) d-o-d to RMB 3,040/t ($452/t) on 1 September, while SHFE rebar futures declined by RMB 20/t ($3/t) to RMB 3,123/t ($465/t). Meanwhile, Chinese billet export offers rose by $12/t to $472/t FOB.

The softer domestic market reflected cooling sentiment following the recent rally, with the local billet index down RMB 10/t and the steel export index declining by $1/t. However, improved rebar trading and firm raw material costs continued to provide underlying support.

Iron ore remained close to $100/t, while coke prices entered a fourth round of increases, keeping production costs elevated. Stronger export activity also supported higher billet offers, with mills testing levels of $472/t FOB amid improved overseas demand.