China: Steel billet, rebar prices rise on improved sentiment, higher raw material costs

• Export offers soften despite modest domestic price recovery
  
  
• Rising inventories cap further steel price gains
  
  

Chinese billet prices increased by RMB 20/t ($3/t) d-o-d to RMB 2,960/t ($436/t) on 16 July, supported by improved market sentiment, firm raw material costs, and positive global cues. Chinese billet export offers eased to around $457/t FOB, although most mills kept export prices largely unchanged as August allocations were still available.

Coke producers confirmed a 10th round of price increase, while iron ore prices strengthened to around $98/t, lifting production costs. Physical steel prices also gained RMB 10-20/t, leading to a modest improvement in trading activity.

Meanwhile, SHFE rebar futures rose by RMB 10/t ($1/t) to RMB 3,072/t ($452/t), reflecting the positive sentiment, although market participants noted the rally was largely sentiment-driven as steel inventories continued to rise and underlying demand remained subdued.