- Higher raw material costs, falling inventories support billet prices
- Export offers fall amid mixed overseas demand, active competition
Chinese billet prices increased by RMB 10/t ($1/t) d-o-d to RMB 2,940/t ($436/t) on 14 August, while SHFE rebar futures rose by RMB 13/t ($2/t) to RMB 3,015/t ($447/t), supported by falling social steel inventories, improving market sentiment, better regional sales, and expectations of stronger September demand.
The market also benefited from tighter supply and higher raw-material costs, with iron ore consumption rising and coking coal remaining a key cost driver following a new mine accident.
Meanwhile, Chinese billet export offers declined by $5/t to around $448/t FOB, despite some leading mills raising base offers by $3-5/t to test the market, as export demand remained mixed and competing origins continued to remain active in the rerolling market.
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