Steel Pressured by Shrinking Margins

Steel rebar futures hovered around CNY 3,080 per ton, staying near five-week lows as tighter margins, driven by elevated raw material costs and subdued demand, continued to pressure the sector. China’s steel industry remains strained by a prolonged property market downturn and weakening construction activity, while its exports face increasing headwinds from anti-dumping and protectionist measures overseas. Vietnam has announced a temporary anti-dumping duty of up to 27.83% on certain Chinese hot-rolled coil products, effective April 17. Meanwhile, investors are closely monitoring developments in the Middle East amid ongoing uncertainty surrounding the US-Iran two-week ceasefire. China exports significant volumes of steel products to the region, including hot-rolled coils, pipes, and rebar, with Saudi Arabia and the UAE among its key markets.

Steel rebar futures held below CNY 3,090 per ton, hovering at one-month lows as the temporary reopening of the Strait of Hormuz eased concerns about prolonged supply disruptions. President Donald Trump delayed planned strikes on Iranian civilian infrastructure in what he called a “double-sided ceasefire,” while Iran agreed to reopen the Strait of Hormuz for two weeks, requiring transit to be coordinated with Iran’s Armed Forces. China exports large volumes of steel products to the Middle East, including hot-rolled coils, pipes and rebar, with Saudi Arabia and the UAE among the top destinations. Steel prices also faced pressure from elevated inventories and anti-dumping measures targeting Chinese output. Vietnam has imposed a temporary anti-dumping levy of up to 27.83% on certain Chinese hot-rolled coil products starting April 17.

Steel rebar futures fell below CNY 3,100 per ton, reaching a four-week low as trading resumed in top consumer and producer China following a long weekend, while investors continued to navigate uncertainties surrounding the Middle East conflict. Markets are focused on President Donald Trump’s deadline for Iran to strike a deal or face attacks on civilian infrastructure, with the prospect of a prolonged conflict fueling concerns over supply disruptions and a global economic slowdown. Steel prices also faced pressure from elevated inventories and anti-dumping measures targeting Chinese steel production. Vietnam has imposed a temporary anti-dumping levy of up to 27.83% on certain Chinese hot-rolled coil products starting April 17. Separately, the Trump administration is preparing to revise tariffs on steel and aluminum, adding further uncertainty to the global steel market.