2025.04.0913:26:22UTC+00Steel Drops to 7-Month Low

Steel rebar futures have declined to below CNY 3,050 per tonne in April, marking an almost 5% decrease for the year and reaching a seven-month low. This can be attributed to the escalating global trade tensions, which have negatively impacted the outlook for the construction and manufacturing sectors. In response to the United States imposing a cumulative 104% tariff on Chinese goods, China increased its levy on US imports to 84%. While a portion of these US tariffs does not directly target steel and the steel trade between the two nations represents a small portion of global transactions, there are concerns that the economic pressures on both countries could affect the demand for ferrous metals in China, the world's largest consumer. Nonetheless, the effect of these tariffs on Chinese steel has been less severe than on other base metals, primarily because economic measures from Beijing are expected to bolster household consumption and support the financial stability of property developers. Furthermore, Beijing has indicated plans to enforce capacity reductions in steel mills, as a strategic response to protectionist trade measures.