FX.co ★ Steel Drops to 3-Week Low

Steel rebar futures fell below CNY 3,100 per ton, extending losses for a second consecutive session and hitting a three-week low, as worries over demand and policy uncertainty pressured market sentiment. Prices weakened following reports that the Trump administration is preparing to revise tariffs on steel and aluminum products. Under the draft plan, tariffs on some items would remain close to 50%, while others would be reduced to around 25%, applied to the full value of imports. The proposed changes have heightened concerns over global trade flows and future steel consumption, further weighing on rebar prices.

At the same time, investors continued to factor in supply-side risks associated with the Iran war, which has pushed up fuel and shipping costs. Market tensions intensified after Trump stated that the conflict is “very close” to being resolved, while also signaling the possibility of strikes on critical infrastructure if negotiations break down, reinforcing fears of a potential escalation.