Global economic improvement & China’s policies support steel market
Time:Mon, 20 May 2024 09:11:49 +0800
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On May 14, 2024, the US imposed additional Section 301 tariffs on Chinese steel imports, sparking strong opposition from China’s steel industry. Chinese officials criticized the US for politicizing steel trade and disrupting the global trade order, highlighting that the WTO had ruled these tariffs as violations. They urged the US to abandon its politicized approach and pursue cooperation that benefits industrial development.
In China, market sentiment has improved due to government policies encouraging local governments to purchase unsold housing, boosting demand. Iron ore futures in Singapore rose, driven by peak seasonal demand and a weak US dollar.
Coke production remains stable, with increased supply as profits recover, despite controlled purchasing by steel mills. The US CPI increased by 3.4% annually, aligning with expectations and suggesting possible interest rate cuts by the Federal Reserve. These factors, along with China’s affordable housing initiatives, support the steel market, maintaining stable prices and improving transactions amidst ongoing destocking.
