- Softer SHFE rebar futures reflect cautious near-term sentiment
- Seasonal rainfall, high temperatures disrupt construction activity
China’s Shagang Steel has kept its long steel prices unchanged for early-August 2026 (1-10 August) sales. The producer maintained prices for rebars (16-25 mm) at RMB 3,300/t ($489/t), coiled rebars (8-10 mm) at RMB 3,430/t ($508/t), and wire rods (6-10 mm) at RMB 3,340/t ($495/t).
The price rollover reflects the mill’s cautious approach amid a challenging domestic market environment. Construction activity remained subdued as seasonal rainfall and high temperatures continued to disrupt project execution and limit steel consumption. As a result, buyers largely confined purchases to immediate requirements, resulting in sluggish spot transactions and muted purchasing interest.
Although some steel mills have trimmed production in recent weeks, domestic steel supply continued to outpace demand, leading to a gradual build-up in steel inventories and keeping pressure on spot prices. Meanwhile, SHFE rebar futures softened by RMB 95/t ($14/t) to RMB 2,989/t ($443/t) on 3 August, down from RMB 3,084/t ($457/t) on 21 July, reflecting cautious market expectations amid concerns over weak seasonal demand and the ongoing supply-demand imbalance.
At the same time, relatively firm steelmaking raw material costs continued to provide support, particularly from coking coal, with ex-Changzhi, Shanxi coking coal prices remaining stable at around RMB 1,553/t ($230/t) from 20 May, limiting the scope for price reduction.
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