China Billet Prices Strengthen 1.82% as Rising Coke and Iron Ore Costs Support the Market

China&#**;s billet market (Billet *******mm, Q*** Ex-Tangshan) displayed renewed strength in the later phase of August ****, as cost support and improving downstream activity offset persistent supply-side pressures. The price of Q*** ***mm square billet in Tangshan climbed from USD ***.**/tonne on August ** to USD ***.**/tonne by August **, before advancing further to USD ***.**/tonne on August **, marking a weekly gain of approximately *.*** in the final week of the month. This upward momentum was underpinned by elevated raw material costs, as coke producers successfully pushed through a RMB ***-***/tonne price hike effective August **, while firmer iron ore and coking coal prices continued to lift steelmaking economics.

However, the supply-demand balance remained delicate. According to the China Iron and Steel Association (CISA), finished steel inventories at key enterprises reached **.** million tonnes by mid-August, up *.** from early August and *** higher year-on-year. This significant...