Steel rebar futures fell to around CNY 3,200 per tonne, reaching a one-month low after President Trump signed an executive order imposing a 25% tariff on steel and aluminum imports, effective March 4.
Steel futures fall on US tariff concerns
While foreign steel makes up a small portion of total US consumption, key industries like aerospace, auto manufacturing, and energy heavily rely on specialty steel imports. Major steel exporters to the US include Canada, Brazil, Mexico, South Korea, and Vietnam, which the new tariffs could directly impact.
The European Union vowed to protect its interests in response to the move. It warned of potential retaliatory actions, while South Korea initiated emergency talks with steelmakers to assess and minimize the impact of the tariffs. Hyundai Steel expressed concerns that the tariffs could lead to higher export prices for its products and a reduction in South Korea’s annual duty-free steel quota, which had been set at 70% of the average volumes shipped to the US between 2015 and 2017.
The uncertainty surrounding these changes is expected to create significant disruptions in the global steel market, potentially reshaping trade relationships and pricing dynamics in the months ahead.
