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Price War Looms in Steel Rebar Market as Southern Mills Undercut Competitors
Non-Energy Minerals · Steel · economic_daily · 2026-10-19
2015
Despite stable official rebar prices, reports of aggressive low-price bidding in the south suggest a brewing price war driven by weak construction demand.
What Happened
Pricing Status: Steel rebar prices have remained flat for four consecutive weeks, reflecting an attempt by steelmakers to stabilize market sentiment. However, this official stability masks the reality of weak end-user demand, with actual transaction prices showing signs of significant softening.
Price Competition: Reports of large-volume rebar orders being secured at NT$17,200 per ton in the south are challenging the NT$17,600 benchmark set by major central mills. This has triggered a chain reaction, with distributors seeking even lower quotes, signaling an imminent price war.
Demand Pressure: The root cause of the price competition lies in sluggish construction demand and conservative inventory replenishment by distributors. Steelmakers are increasingly forced to offer discounts to maintain production capacity and cash flow, intensifying market rivalry.
Profit Risks: As rebar prices continue to slide, the profit margins of steel mills are under severe pressure. If the decline in finished product prices outpaces the reduction in raw material costs, processing margins will be further eroded, and the industry is closely monitoring market developments.