FX.co ★ Steel Prices Steady Amid US-China Trade Talks

Steel rebar futures held steady above CNY 2,970 on Tuesday, maintaining a sideways trajectory for the third consecutive session as investors closely watched US-China trade negotiations. Representatives from both countries convened in London on Monday to discuss rare earth shipments and the possibility of easing export restrictions, with additional discussions anticipated on Tuesday morning. Although easing trade tensions provided some positive support to sentiment, steel prices lingered near their lowest point since September 2024, as weak economic data from China continued to weigh on demand expectations. Chinese export growth in May fell short of expectations, heavily affected by a significant drop in shipments to the US amid ongoing trade disputes. Further complicating matters, global steel markets encountered new challenges last week when President Trump signed an executive order to double tariffs on imported steel to 50%. While this move drove up US domestic steel prices, it intensified downward pressure on international benchmarks, particularly impacting the Chinese market.