Steel Hovers Near 3-Month Low

Steel rebar futures fell toward CNY 3,100 per ton, extending losses for another session to reach a three-week low as demand concerns and policy uncertainty weighed on sentiment. Prices came under pressure amid reports that Donald Trump’s administration is preparing to revise tariffs on steel and aluminum products. The plan would keep tariffs near 50% on some products while lowering others to about 25%, applied to full import values. The shift has raised concerns over global trade and steel demand, weighing on rebar prices. In addition, investors continued to assess supply-side pressures linked to the Iran war, which have driven up fuel and shipping costs. Tensions intensified after Trump said the conflict is “very close” to completion. He also signaled potential strikes on critical infrastructure if negotiations fail, reinforcing fears of escalation.

Steel rebar futures fell toward CNY 3,120 per ton, giving back recent gains as investors continued to assess the impact of supply constraints linked to the Iran war, which have lifted fuel and shipping costs. Israel also struck two major steel factories in Iran reportedly tied to the IRGC, adding further complexity to the global steel market. In China, recent data showed steel production fell 3.6% to 76.1 million tons in February, while global output declined 2.2% to 141.8 million tons. During the annual parliamentary sessions in Beijing earlier this month, authorities reaffirmed their commitment to reducing overcapacity in the steel sector amid weakening demand. China’s steel industry continues to face structural headwinds as the economy matures, with softer construction activity further pressured by the prolonged property downturn.

Steel rebar futures fell below CNY 3,130 per ton, hitting a two-week low as China’s key steelmaking hub of Tangshan activated a level-two emergency response to heavy air pollution, raising concerns over potential output curbs and tighter environmental inspections. Industry data also showed Chinese steel production declined 3.6% to 76.1 million tons in February, while global output fell 2.2% to 141.8 million tons. During the annual parliamentary sessions in Beijing earlier this month, authorities reaffirmed their commitment to reducing overcapacity in the steel sector amid weakening demand. China’s steel industry continues to face structural headwinds as the economy matures, with softer construction activity further weighed down by the prolonged property downturn. Total output dropped below 1 billion tons last year for the first time since 2019.