- Weak construction demand weighs on price recovery
- Compressed margins limit mills’ scope for price cuts
China’s Shagang Steel has kept its long steel prices unchanged for mid-August 2026 (11-20 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 ($509/t), and wire rods (6-10 mm) at RMB 3,340/t ($495/t).
The rollover comes amid continued pressure on China’s construction-steel market, where sluggish end-user demand, seasonal weakness and elevated inventories are limiting the scope for a sustained price recovery. Rebar mill losses widened to around RMB 200/t ($30/t) in July, prompting producers to advance maintenance schedules and reduce output on commercial grounds.
However, the cuts have yet to materially ease inventory pressure, underscoring the imbalance between supply and demand. Against this backdrop, Shagang’s decision to hold prices steady reflects a wait-and-watch approach, aimed at supporting market stability and protecting mill profitability while awaiting a meaningful improvement in downstream demand.
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