Steel holds below 3,300 yuan after tariffs threat

Steel rebar futures hovered below CNY 3,300 per tonne, amid uncertainty over US trade policy as President Donald Trump announced plans for a 25% tariff on all steel and aluminum imports. He stated the tariffs would apply to all countries but did not specify when they would take effect, adding to market uncertainty.

Steel holds below 3,300 yuan after tariffs threat

The broad measure threatens global trade ties and raises concerns for major exporters like South Korea, Japan, and the European Union, which rely heavily on steel exports to the US. While Trump has previously imposed and later paused tariffs on key partners like Canada and Mexico, the lack of clarity fuels unease among global producers and investors.

US imports role US steel imports, though a smaller share of domestic consumption, are crucial for industries relying on specialty grades, including aerospace, automotive, and energy. The construction sector, a major consumer of rebar, could also face higher input costs, potentially affecting infrastructure projects and real estate development. During Trump’s first term, some oil companies secured exemptions, easing concerns for energy firms, but the new tariff plan’s scope remains uncertain.

South Korea figures

South Korea, already diversifying exports since Trump’s initial trade policies, now ships about 70% of its pre-2018 average to the US by volume, though the country remains its top steel customer by value. Other major steel exporters have also sought alternative markets to mitigate risk, redirecting shipments to Southeast Asia and Europe. However, the potential for trade retaliation and prolonged policy instability continues to weigh on global steel prices and investment decisions.