China: Billet prices decline d-o-d; export offers soften amid weak demand

• Coke price hike supports production cost base
  
  
• Domestic rebar trading volumes remain subdued
  
  

Chinese billet prices declined by RMB 10/t ($1/t) d-o-d to RMB 2,990/t ($442/t) on 22 June, while SHFE rebar futures eased by RMB 9/t ($1/t) to RMB 3,163/t ($467/t). Market sentiment remained weak amid slow seasonal demand and subdued trading activity, with domestic rebar trading volumes reported at around 80,000 t/day.

Chinese billet export offers also declined by $4-5/t w-o-w to around $465-466/t FOB amid softer export steel prices and cautious overseas buying interest. However, losses were partially limited by higher raw material costs, as coke producers implemented an eighth consecutive price increase of RMB 50/t, while iron ore prices remained near $98.5/t.