FX.co ★ Steel Falls to 1-Month Low on US Tariff Concerns

Steel rebar futures dropped below CNY 3,160 on Monday, reaching their lowest point in a month. This decline followed reports indicating that the Trump administration extended its 50% tariff on steel and aluminum imports to include hundreds of additional products, effective today. President Trump also mentioned he plans to introduce further tariff measures targeting steel and semiconductor chips in the near future. However, expectations of additional property stimulus in China and initiatives to control overproduction may offer some support against further downward pressure. Last Friday, the People's Bank of China (PBOC) committed to enhancing its monetary policy framework, promising to implement and refine a moderately loose stance to address the persistent challenges in the property sector. On the supply side, China's crude steel production decreased to a seven-month low in July amid government efforts to tackle overcapacity. This reduction has contributed to improved profitability, restoring steel mill margins to positive levels.