China: Billet prices rise on strong futures, tight supply

• Raw material costs continue moving higher
  
  
• Strong market opening lifts sentiment
  
  

Chinese billet prices rose by RMB 50/t ($7/t) to RMB 3,090/t ($454/t) on 6 May, while rebar futures increased by RMB 35/t ($5/t) to RMB 3,198/t ($469/t), supported by a strong opening in the Chinese market, speculative buying in steel futures, and expectations of slower supply growth.

Rising raw material costs, including stronger iron ore and coke prices, further boosted sentiment, while billet export prices were heard at around $480/t FOB China. Higher HRC prices, firmer export offers above $500/t FOB, and improved global slab demand provided additional support to domestic steel prices.