- Softer futures reflect cautious near-term steel market sentiment
- Weak demand continues amid rainfall disrupting construction activity
China’s Shagang Steel has kept its long steel prices unchanged for late-June 2026 sales. The producer maintained prices for rebars (16-25 mm) at RMB 3,400/t ($500/t), coiled rebars (8-10 mm) at RMB 3,530/t ($519/t), and wire rods (6-10 mm) at RMB 3,440/t ($506/t).
The price rollover comes amid a challenging domestic market environment. Demand remains under pressure as widespread rainfall across several regions continues to disrupt construction activity, reducing steel consumption. Meanwhile, rebar futures have gradually weakened and recently fell to a two-month low of RMB 3,112/t ($458/t) on 24 June, down by RMB 78/t ($11/t) from RMB 3,190/t ($469/t) on 24 April, reflecting cautious market sentiment and subdued buying interest.
However, production costs remain relatively elevated. Met coke prices rose by RMB 55/t ($8/t) w-o-w to RMB 1,830/t ($269/t) Exw Tangshan, Hebei on 24 June, up from RMB 1,775/t ($261/t) on 17 June, while coking coal prices remained stable w-o-w at around RMB 1,553/t ($228/t) Ex-Changzhi, Shanxi. These increases have supported steelmakers’ cost structures, largely offsetting the impact of softer iron ore prices (CNF Rizhao), which fell by $4/t w-o-w to around $97/t on 24 June from $101/t on 17 June. As a result, production costs have remained firm, limiting room for further price reductions despite weak demand conditions.
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