Data: SHFE, DCE market movement (Jun 18)

The PBOC left the one-year and five-year loan prime rates (LPR) unchanged at 3% and 3.5% respectively, marking 13 consecutive months of no change.

In May 2026, China produced 84.36 million mt of crude steel (down 2.7% YoY), with daily output at 2.7213 million mt/day (down 2.4% MoM); 72.97 million mt of pig iron (down 2.6% YoY), with daily output at 2.3539 million mt/day (down 0.1% MoM); and 123.03 million mt of steel products (down 2.8% YoY), with daily output at 3.9687 million mt/day (down 2.9% MoM). In January-May, cumulative crude steel production was 416 million mt (down 3.9% YoY), with average daily output at 2.7519 million mt; pig iron production was 355 million mt (down 3.1% YoY), with average daily output at 2.3491 million mt; and steel products output was 593 million mt (down 1.5% YoY), with average daily output at 3.9271 million mt.

Raipur billet prices rose by around 2 USD/tonne day-on-day to about 453 USD/tonne EXW. The increase was supported by previous bookings, moderate buying interest, and firmer sentiment in neighbouring markets. However, spot procurement remained cautious as buyers assessed whether the recovery could continue. Near-term billet momentum will depend on finished steel demand and follow-up transactions.