Steel Falls to 1-Month Low on US Tariff Concerns

Steel rebar futures fell below CNY 3,160 on Monday, hitting their lowest level in a month after reports that the Trump administration expanded its 50% tariff on steel and aluminum imports to cover hundreds of additional products, effective today. President Trump also said he would announce further tariff measures on steel and semiconductor chips in the coming weeks. Still, downside pressure may be cushioned by expectations of additional property stimulus in China and measures to curb overproduction. On Friday, the PBOC pledged to further improve its monetary policy framework, vowing to implement and fine-tune a moderately loose stance to counter continued weakness in the property sector. On the supply side, China’s crude steel output fell to a seven-month low in July amid government efforts to address overcapacity, helping improve profitability and pushing steel mill margins back into positive territory.