- Pre-holiday restocking provides limited demand support
- Higher raw material costs support mill price increase
China’s Shagang Steel has raised its long steel prices by RMB 50/t ($7/t) for sales during 21-30 September 2026. The producer increased its rebar (16-25 mm) price by RMB 50/t ($7/t) to RMB 3,350/t ($500/t), while coiled rebar (8-10 mm) and wire rod (6-10 mm) prices were also raised by RMB 50/t ($7/t) each to RMB 3,480/t ($519/t) and RMB 3,390/t ($506/t), respectively.
The increase comes amid elevated coking coal and coke costs, which have pushed up steelmaking expenses and encouraged mills to pass higher input costs through to finished steel prices. Meanwhile, buying activity has improved ahead of China’s National Day holidays as some buyers replenish stocks. However, procurement remains selective, indicating that the improvement is largely driven by pre-holiday restocking rather than a broad-based recovery in end-user demand.
Overall, steel prices may continue to receive support from elevated raw material costs and seasonal restocking ahead of the holidays. However, with end-user demand yet to fully recover, selective procurement could limit further price increases in the near term.
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