- Higher raw material costs lift steel prices
- Autumn demand expectations improve market sentiment
Chinese billet prices increased by RMB 10/t ($1/t) d-o-d to RMB 2,940/t ($436/t) on 11 August, while SHFE rebar futures rose RMB 39/t ($6/t) to RMB 3,016/t ($447/t). The gains were supported by firmer iron ore and coking coal prices, with coking coal hitting its daily limit and lifting overall steelmaking costs.
Improved buying interest also lifted some spot steel prices by RMB 5-10/t ($1-2/t), while Baosteel’s RMB 50/t ($7/t) increase in its September benchmark signalled a more positive outlook for autumn demand. Meanwhile, firm export sentiment supported Chinese billet export offers, which increased by $3/t to around $453/t FOB.
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