China's steel price index (CSPI) fell in August 2026 from both the previous month and a year earlier, according to data from the China Iron and Steel Association (CISA). The average CSPI stood at 91.10 points in August, down 0.71% from the previous month and 3.92% from a year earlier.

The CSPI long products index averaged 91.58 points, down 1.09% month on month and 4.77% year on year. The flat products index averaged 90.15 points, down 0.49% from the prior month and 3.69% from the same period last year.

As of end-August 2026, the CSPI was at 92.10 points, up 1.13% from the previous month, up 0.25% from the end of last year and down 2.04% year on year.

By product, average prices of the eight major steel categories monitored by CISA fell in August, except for galvanized sheet and medium-thick plate, which were flat.

Among long products, high wire rod posted the largest decline, falling 40 yuan/t, or 1.23% from the prior month. Among flat products, hot-rolled coil recorded the biggest drop, down 26 yuan/t, or 0.77%. Seamless pipe saw the steepest price decline among the eight categories, down 48 yuan/t, or 1.17%.

By region, the average CSPI across all six major regions declined from the previous month, though the pace of decline narrowed from a month earlier. Southwest China posted the largest drop at 1.24%, while Northeast China saw the smallest decline at 0.48%.

CISA noted that the domestic steel market stabilized in August, ending its slide amid expectations of a seasonal demand recovery, stronger cost support and easing inventory pressure, following a pattern of "initial weakness, later recovery and low-level repair".

Entering September, multiple rounds of coke price hikes took effect, but the traditional "Golden September" peak season did not materialize as expected. The domestic steel market shifted from August's "cost-driven rally" to a stalemate of "cost support pitted against weaker-than-expected demand", with prices moving in a narrow range.

CISA said market participants should watch for the risk of peak-season demand falling short of expectations. On one hand, the decline in real estate development investment is still widening, with new construction starts continuing to contract. Under the policy direction of "controlling new supply and destocking", new starts and real estate investment are expected to remain at low levels.

On the other hand, although some bullish policies ave been rolled out intensively, there is a time lag between policy deployment and the formation of physical work. Infrastructure investment has continued to contract, creating uncertainty over the pace at which infrastructure will drive steel demand.

In addition, the operating rates and average monthly working hours of major construction machinery products both fell year on year in August, leaving construction steel demand without substantive support. If end-user demand fails to materialize effectively in September-October, the current "cost-driven" rally lacks a demand foundation, and steel prices face correction risk.

CISA also highlighted the importance of industry self-discipline and maintaining market order. It noted that a considerable number of steelmakers have fallen into losses, yet production cuts remain insufficient, and the negative feedback risk of "producing more, losing more" is accumulating. Against this backdrop, companies should take a rational view of market fluctuations, avoid disorderly low-price competition and jointly maintain a fair and orderly market environment.