FX.co ★ Steel Extends Losses on China Output Cuts, US Tariffs

On Wednesday, steel rebar futures settled near CNY 3,130 per tonne, marking a one-month low, following reports of impending production cuts in China. Specifically, steel manufacturers in Tangshan are anticipated to reduce sintering output by 30% starting August 25 and are set to decrease blast furnace output by 40% from August 31. These reductions, while significant, fall short of the complete shutdown forecasted by market analysts. Additionally, transportation restrictions across the Beijing-Tianjin-Hebei area are projected to constrain metal shipments, thereby decreasing demand. The pricing pressure has also been exacerbated by U.S. trade policies. The Trump administration recently extended its 50% tariff on steel and aluminum imports to include hundreds of additional products, effective August 18. President Trump has indicated that further tariff measures, focusing on the steel industry and semiconductor chips, will be announced in the near future.