11.04.202509:11:00UTC+00Steel Drops Over 7% Year-to-Date

In April, futures for steel rebar in China were trading close to CNY 3,050 per tonne, representing a decline of over 7% since the beginning of the year. This downturn is attributed to the intensifying trade conflict between China and the United States, which has created a challenging outlook for the construction and manufacturing sectors within the world’s largest consumer of ferrous metals. In response to US measures, China increased tariffs to 125% and issued a warning that further retaliations would be deemed ineffective, as US goods are losing market viability in China. Although the majority of US tariffs do not specifically target steel, and the volume of steel trade between the two nations constitutes a minor fraction of global exchanges, the economic concerns impacting both countries have clouded the procurement prospects of ferrous metals for China's market. Nevertheless, the effect of these tariffs on Chinese steel has been relatively modest compared to base metals. This can be attributed to expectations of robust economic stimulus measures from Beijing, which aim to bolster household spending and the financial stability of property developers. Furthermore, Beijing has indicated plans to enforce capacity reductions for steel mills in response to protectionist trade actions from countries such as Vietnam, South Korea, and Brazil.