- Higher coke costs and lower output strengthen price support
- Seasonal demand improves, but recovery remains moderate
China’s Shagang Steel has raised its long steel prices by RMB 50-150/t ($7-22/t) for sales during 11-20 September 2026. The producer increased its rebar (16-25 mm) price by RMB 50/t ($7/t) to RMB 3,300/t ($492/t), while coiled rebar (8-10 mm) and wire rod (6-10 mm) prices were raised by RMB 150/t ($22/t) each to RMB 3,430/t ($511/t) and RMB 3,340/t ($498/t), respectively.
The fifth round of coke price increases has raised steelmaking costs and further widened mill losses, prompting some producers to undertake blast-furnace maintenance and reduce output. The blast-furnace operating rate of major steel enterprises fell by 0.66 percentage points w-o-w to 78.08% as of September 9.
Meanwhile, falling construction-steel inventories and the onset of the traditional “Golden September” season have provided additional support to market sentiment. Total construction-steel inventories across major Chinese cities fell by 192,500 t w-o-w to 4.90 mnt as of September 11, down 3.79% w-o-w. Demand has shown some improvement with the start of the traditional peak season, but the recovery remains moderate, with downstream buying yet to strengthen significantly.
Overall, Shagang’s latest price increase appears to be supported primarily by higher production costs, tighter supply and continued inventory destocking rather than a strong demand-led recovery. While seasonal demand has improved somewhat in September, consumption remains moderate, with downstream buying yet to strengthen significantly.
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