While iron ore prices recovered and steel prices stabilised, market participants refused to see this as a sign for optimism, but dismissed the upward trend as a technical rebound only.

Come Friday July 10, iron ore spot prices recovered to around $50 per tonne cfr.

Spot rebar prices picked up, as buyers stocked up on materials amid a typhoon alert on the eastern coast while prices in the northern region rose in line with that of billet.

However, the China Iron & Steel Assn (Cisa) expects Chinese steel prices to drop even further over the rest of July on oversupply pressures, seasonally weak demand and the slowdown in the Chinese economy.

The decline in iron ore spot prices means that junior miners find themselves under a lot of pressure again and production cuts are expected to be announced in coming months.

As the brakes tighten more on the Chinese economy, the prospect of yet more steel product exports is looming, as domestic steelmakers seek outlets for their material.

The billet market is a case-in-point.

Billet exports from China have once again become a hot topic globally, and Steel First’s editorial teams around the world have asked market participants about the effects the rising exports have on trade flow in their regions.