China billet market weakens amid demand concerns, margin pressure

• Lower iron ore futures reflect demand weakness
  
  
• Chinese billet export offers remain largely stable
  
  

Chinese billet prices declined by RMB 20/t ($3/t) d-o-d to RMB 3,000/t ($444/t) on 18 June, while SHFE rebar futures softened by RMB 4/t ($1/t) to RMB 3,172/t ($469/t), pressured by seasonally weak steel demand, rising social inventories, and cautious market sentiment.

Additional pressure came from weaker iron ore futures, which fell below $100/t (62% Fe) amid sluggish steel consumption, ample port inventories, and increased supply from alternative origins.

Chinese billet export offers were heard at around $470/t FOB, reflecting largely stable export sentiment despite subdued trading activity. Meanwhile, rising coking coal prices continued to squeeze mill margins, offsetting some of the cost support from softer iron ore prices. Although mills maintained relatively firm billet pricing, the lack of stronger demand signals continued to weigh on the market.