[SMM Steel]

On August 6 China's steel export prices generally edged higher. Some flat-product export prices rose 1 USD/tonne day on day, with HRC transactions at 481-484 USD/tonne; prices have risen for successive days after the earlier decline, enquiries increased, and some products that did not follow the rise saw a degree of business. Billet export FOB prices rose 1 USD/tonne, with Jiangyin port offers at 450-455 USD/tonne, although overseas demand is fairly limited, billet export enquiries are few and competition is fierce, so deals are only possible with price concessions. Rebar export offers at Tianjin port rose 1 USD/tonne with transactions at 475-481 USD/tonne; a modest gain in futures improved enquiry sentiment and some mills concluded small-lot business, while GB-standard rebar exported to Hong Kong was offered at about 505-508 USD/tonne CFR with demand still present.

According to SMM statistics, mill inventory and social inventory continued to diverge this period. Steel mill production declined, and mill inventory still saw a slight destocking, while social inventory continued to build up, though the pace of inventory buildup slowed. Total construction steel inventory stood at 8.4788 million mt, up 0.06% MoM, an increase of 5,400 mt.