Destocking Pace Slows Slightly, Short-Term Construction Steel Prices Likely to Consolidate

Published: Oct 22, 2026 17:13 (GMT+8)

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Rebar futures drifted lower today, with the most-traded contract closing at 3,059, down 0.68% from the previous trading day. In the spot market, some regions followed the decline in futures, with prices down 10-20 yuan/mt, and overall trading activity was moderate.
From a fundamental perspective, on the supply side, blast furnace steel mills generally reported improved per-ton margins for construction steel, which slightly boosted their willingness to produce, and some mills resumed production on construction steel rolling lines. With profitability maintained and scrap procurement not particularly difficult, most EAF steel mills were able to sustain production at off-peak and flat electricity rates, aside from routine maintenance at a few individual EAF mills, keeping production pace relatively stable. On the demand side, the divergence between north and south China became increasingly evident. In the north, colder weather slowed construction progress at end-user sites, reducing rigid procurement demand. In the south, favorable weather allowed normal construction pace to continue, with demand still showing strong resilience. With gains in one region offsetting losses in the other, overall demand this period remained largely at the previous period's level. According to SMM statistics, construction steel inventory at mills and in social warehouses saw some destocking this period, with total construction steel inventory at 6.5646 million mt, down 224,700 mt MoM, or -3.31% MoM, indicating a slowdown in the pace of destocking. Overall, construction steel fundamentals currently lack directional drivers, and short-term prices are likely to continue consolidating. Attention should remain on changes on the cost side.

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