Steel Falls as EU Tightens Trade Measures

Steel rebar futures dropped below CNY 3,080 per ton, sliding toward six-week lows after the European Union moved to raise tariffs on imported steel to 50%, aiming to protect its struggling domestic industry from a surge in low-cost Chinese supply. The agreement also reduces duty-free import quotas by 47%, with EU trade chief Maros Sefcovic warning that persistent global overcapacity poses a threat to Europe’s industrial base. China’s steel exports continue to face mounting pressure from anti-dumping measures and rising protectionism overseas, alongside a prolonged downturn in the property sector and softer construction activity at home. Market sentiment was also shaped by geopolitical developments, as investors weighed the possibility of a longer-term US-Iran ceasefire despite the ongoing US blockade on Iranian shipments.

Steel rebar futures climbed above CNY 3,080 per ton, halting a recent decline as Chinese steel mills resumed production. Sharp drops in raw material costs have improved mill margins, supporting higher output of molten iron. Global supply concerns also shaped market sentiment after US-Iran peace talks in Islamabad over the weekend failed to produce a deal. President Donald Trump also announced plans to blockade the Strait of Hormuz and is reportedly considering renewed strikes on Iran. China exports substantial volumes of steel products to the Middle East, including hot-rolled coils, pipes, and rebar, with Saudi Arabia and the UAE among its key destinations. Meanwhile, the domestic steel sector continues to face pressure from a prolonged property market downturn and weaker construction activity, while exports encounter growing headwinds from anti-dumping actions and rising protectionism abroad.

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.