- Higher raw material costs support domestic billet prices
- Export offers soften amid weak overseas demand
Chinese billet prices increased by RMB 20/t ($3/t) d-o-d to RMB 2,970/t ($435/t) on 14 July, while SHFE rebar futures rose by RMB 36/t ($6/t) to RMB 3,090/t ($451/t). The rebound was supported by improved sentiment across China’s commodity and equity markets following government measures to stabilise financial markets. Mills largely held offer prices firm as inventories remained stable.
However, Chinese billet export offers edged down to around $457/t FOB as subdued overseas demand and intense competition from Southeast Asian suppliers continued to pressure export sales. Meanwhile, stronger raw material costs, with iron ore prices rising around 2% and coke producers testing higher prices, lent support to the domestic market. Market participants remained cautious over whether the recovery can be sustained through the summer.
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