- Weak seasonal demand continues to weigh on sentiment
- Spot demand remains weak despite firmer futures
China’s Shagang Steel has kept its domestic long steel prices unchanged for mid-July 2026 sales, reflecting cautious sentiment amid weak seasonal demand and subdued spot market activity. The producer maintained prices at
- Rebars (16-25 mm): RMB 3,400/t ($502/t)
- Coiled rebars (8-10 mm): RMB 3,530/t ($522/t)
- Wire rods (6-10 mm): RMB 3,440/t ($508/t)
The move reflects the disconnect between improving futures and weak physical market fundamentals, as seasonal demand continues to weigh on spot trading. The October 2026 rebar contract on the Shanghai Futures Exchange (SHFE) rose by RMB 33/t ($5/t) to RMB 3,112/t ($460/t) as on 15 July 2026, from RMB 3,079/t ($455/t) on 6 July. However, downstream buyers largely continued to procure only against immediate requirements during the traditional summer off-season.
Market participants said weak seasonal demand continued to weigh on steel consumption, with pricing pressure increasingly shifting from finished steel to upstream raw materials. Expectations of steel production cuts and lower coking coal prices have made developments in the coking coal and coke markets a key indicator for the broader ferrous sector.
Overall, sentiment remains cautious as the market lacks strong demand-side or policy-driven catalysts to support a sustained recovery. Until downstream consumption improves, mills are likely to maintain a conservative pricing strategy despite modest gains in steel futures.
Leave a Reply