Chinese billet, rebar futures decline amid weak demand pressure

• Rising social inventories weigh on market sentiment
  
  
• Mills maintain prices amid elevated coke costs
  
  

Chinese billet prices declined by RMB 10/t ($1/t) d-o-d to RMB 3,020/t ($447/t) on 17 June, while SHFE rebar futures softened by RMB 13/t ($2/t) to RMB 3,176/t ($470/t), pressured by seasonally weak steel demand, rising social inventories, and cautious market sentiment. Additional pressure came from falling iron ore prices, which slipped below $100/t (62% Fe) amid higher port inventories and increased supply from alternative origins.

Chinese billet export offers were heard at around $470/t FOB, reflecting largely stable export sentiment despite subdued trading activity. Although mills maintained firm pricing due to elevated coke costs and production cost pressures, the absence of clear macroeconomic signals continued to weigh on the market.