- Raw materials price cuts offer limited relief to mills
- Weak demand limits steel market recovery
Shagang steel, one of China’s largest steel producers, has kept its long steel list prices unchanged at RMB 3,450/t ($515/t) for rebar (16-25 mm), RMB 3,580/t ($535/t) for coiled rebar (8-10 mm) and RMB 3,490/t ($521/t) for wire rod (6-10 mm) for mid-October (11-20 October) 2026 sales, maintaining the levels set for the first ten days of the month.
The decision came amid mixed conditions in China’s steel market, where trading activity remains subdued with demand remaining weak. Overall trading volumes remain low, indicating that demand has yet to strengthen sufficiently to support a sustained price recovery. The market continues to await a clearer improvement in downstream demand.
Meanwhile, steel mill profitability remains under pressure, with limited scope for recovery despite two rounds of coking coal price cuts. Although lower coke costs can ease production expenses for integrated steelmakers, weak finished steel demand continues to constrain margins. As a result, lower raw material costs have not provided sufficient support for a stronger recovery in the finished steel market.
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