- Weak steel demand pressured domestic billet prices
- Expected coke price cuts reduced production costs
Chinese billet prices declined by RMB 20/t ($3/t) d-o-d to RMB 2,960/t ($437/t) on 21 July, while SHFE rebar futures edged down by RMB 1/t ($0.14/t) to RMB 3,095/t ($457/t), reflecting weak steel demand and easing raw material costs. Chinese billet export offers remained stable at around $465/t FOB despite softer export sentiment, as mills maintained base offer levels amid slightly improved enquiries.
Iron ore prices weakened on lower hot metal production, while expectations of a first-round coke price cut pointed to lower steelmaking costs. Although broader commodity sentiment improved following financial market stabilization, persistent demand weakness, Red Sea shipping disruptions, and global trade barriers continued to cloud the outlook for Middle East-bound steel exports.
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