August 27, 2026
On August 27, snail, coil and bifocal futures rose. In terms of spot prices, rebar prices remained stable in most markets, with a few rising by 10 yuan/ton. As the construction season approaches in September, supply and demand are expected to slowly improve, coupled with cost support, short-term steel prices may fluctuate at high levels.
Macroeconomic Overview: From January to July, the total profits of industrial enterprises above designated size nationwide increased by 17.6% year-on-year, with the steel industry achieving profits of 29.09 billion yuan; Typhoon Saudel is expected to make landfall along the coast from Xiangshan, Zhejiang to Lianjiang, Fujian; the US core PCE rose 3.3% year-on-year and 0.2% month-on-month in July, in line with market expectations.
Industry Overview: According to Mysteel research, on August 26, 237 mainstream traders traded 89,800 tons of construction steel, a decrease of 1.34% month-on-month. This week, the average daily output of coking coal from 523 coking coal mines was 633,000 tons, an increase of 1,000 tons month-on-month, and coking coal inventory was 1.443 million tons, a decrease of 211,000 tons month-on-month; the second round of coke price increases of 100-110 yuan/ton has been fully implemented.
Affected by the typhoon, widespread rainfall occurred in both northern and southern China from August 27 to 29, affecting the construction progress of downstream construction sites. Steel market transaction volume was strong at first and then weak this week, limiting the potential for steel price increases. With the September construction season approaching, market sentiment is relatively stable, with expectations of a slow improvement in supply and demand fundamentals. Meanwhile, coking plants still have plans to raise prices, providing strong cost support. In the short term, steel prices may fluctuate at high levels.
