China: Billet prices remain stable as spring demand improves

• Tight steel output, stronger rebar trade support billets
  
  
• Soaring freights continue to pressure export activity
  
  

Chinese billet prices remained unchanged d-o-d at RMB 2,970/t ($431/t) on 13 March, supported by improving domestic demand as the market gradually enters the spring consumption phase. Steel output has fallen to a three-year low, while stronger trading activity in rebar supported overall sentiment.

Meanwhile, SHFE rebar futures rose by RMB 22/t ($3/t) d-o-d to RMB 3,142/t ($456/t). However, export activity remained constrained, as sharply rising freights pressured negotiations between buyers and sellers, despite export indices increasing by $2/t amid firm raw material costs, particularly iron ore.