FOCUS: Production curbs, US tariff threat keep Chinese steel market in flux

The Chinese steel market is likely to be caught between the poles of production cuts in Tangshan and bearish sentiment arising from a threat of higher import tariffs in the United States in May.

As such, market participants are expecting steel prices to experience some short-term fluctuation, albeit in a narrow range. "Spot prices in the coming weeks will depend on whether Tangshan strictly implements production curbs and the progress of the China-US trade negotiations. Supply and demand are not expected to experience any sharp changes,” an industry analyst in Shanghai said earlier this week. Lowering emissions Local authorities in Tangshan - China’s steelmaking hub in the northern region - have instructed steelmakers under their jurisdiction to cut production by 20-50% this month to improve air quality as part of the country’s ongoing "Blue Skies" policy, with details of the cuts announced late-April. Steel mills in the districts of Lubei, Kaiping, Guye, and Fengnan, the cities of Qian’an and Luanzhou, and Luannan county, must at...

Published

Jessica Zong

May 09, 2019

09:47 GMT

Shanghai