China: Billet prices fall slightly amid export disruptions; firm raw material costs cap downside

• Export orders to Middle East suspended
  
  
• Rebar futures fall as market remains quiet
  
  

Chinese billet prices were unchanged d-o-d RMB 2,910/t ($422/t) on 2 March 2026, as compared to 27 February, amid rising global uncertainty following the US-Iran conflict. While broader commodity futures strengthened, steel prices reacted more slowly as post-Lunar New Year domestic demand remained subdued. Export activity to key Middle East destinations was largely suspended, keeping spot demand cautious and limiting movement in billet values.

Meanwhile, SHFE rebar futures declined by RMB 7/t ($1/t) to RMB 3,067/t ($446/t) as compared to 27 February, as the local physical market stayed quiet and traders remained wary of sudden shifts in the global situation.

It is important to note that China exports nearly one-fifth of its total steel shipments to the Middle East market. In the domestic market, raw material prices, including iron ore and coke, trended higher on improved mill demand, limiting a sharper downside in steel prices.