Steel spot and futures prices continued to slide up to the Chinese Mid-Autumn Festival starting Thursday. Some traders expected a slight rebound in prices next week but the overall outlook remains bleak, Kallanish notes.

Spot 20mm HRB400 rebar prices in Shanghai were at around CNY 2,270-2,320/tonne ($340-347/t) on Wednesday, down CNY 20/t. 5.5x1,500mm Q235B hot rolled coil meanwhile was down CNY 35/t at CNY 2,660-2,700/t.

The January rebar contract on the Shanghai Futures Exchange closed down CNY 22/t at CNY 2,250/t ($337/t), while the same contract for hot rolled coil closed up CNY 4/t at CNY 2,552/t.

Traders reported continuing trade as buyer booked orders ahead of the holiday but end user demand was not strong. Most expect only a slight change in prices next week and held differing views as to the direction. One trader noted that orders might pick up after the three day Mid-Autumn Festival and the week long National Day holiday from 1 October. Another trader however thought prices were beginning a long trend of steady decline which could last out the year.