China rebar sinks to near 10-year low amid weak demand, elevated inventories
Chinese domestic rebar prices fell below 3,000 yuan/metric ton ($444/mt) in early August for the first time in nearly 10 years, pressured by persistently weak construction steel demand, insufficient production cuts and pessimistic market sentiment. Several China-based mill and trading sources expected that elevated rebar inventories could cap any seasonal recovery in late August and ...
China's domestic rebar prices dropped to a near 10-year low of 3,000 yuan/metric ton in early August, a first since January 2017, due to sluggish construction steel demand, inadequate production cuts, and a negative market outlook. Platts assessed the rebar at 2,990 yuan/mt on August 3 and 4, marking the lowest level since 2017.
Several mill and trading sources predicted that elevated rebar inventories could hinder any seasonal recovery in late August and September. Despite recent improvements in steelmakers' financial health, including diversified product portfolios and stronger cash flows, they noted that current losses on rebar sales are manageable, limiting the incentive for deeper production cuts.
China's rebar inventories at major spot markets reached 4.21 million metric tons as of July 31, up 9.1% from June and 35% higher than a year ago, showing no signs of decline in early August. The absence of new stimulus measures targeting the property or infrastructure sectors following a Politburo meeting in July 2026 further dampens market sentiment, leading to a downward trend in construction steel demand and sustained pressure on rebar prices.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
