- Domestic demand recovery remains slower than expected
- Post-holiday inventory trends reflect uneven market conditions
China’s Shagang steel, has raised its long steel prices by RMB 100/t ($15/t) for sales during 1-10 October 2026. The producer increased its rebar (16-25 mm), coiled rebar (8-10 mm) and wire rod (6-10 mm) prices to RMB 3,450/t ($515/t), RMB 3,580/t ($535/t), and RMB 3,490/t ($521/t), respectively.
The increase comes amid steelmaking cost pressures and a slower-than-expected recovery in domestic demand. High coking coal and coke prices have squeezed steelmakers’ margins, while subdued demand has limited support from end-users. Meanwhile, post-holiday inventory trends reflected uneven market conditions, with trader inventories accumulating during the National Day holiday as market transactions slowed, following production cuts by mills during the holiday period.
Overall, Shagang’s price hike highlights the contrast between cost-side support and subdued demand in China’s long steel market. While steelmaking costs remain an important factor in pricing decisions, the slow recovery in consumption continues to limit demand-side support.
Leave a Reply