Since the US accounts for only 1% of China's steel exports, the tariff increase may not significantly affect the Chinese industry. The main markets for China's steel exports are Japan, South Korea, and Middle Eastern countries.
However, some countries are taking measures against Chinese steel imports. Domestically, the slowdown in the construction sector is reducing steel consumption.
China's steel industry faces domestic challenges as well as the need to reduce excess capacity and comply with production limits Beijing has imposed to limit carbon emissions. Vice Chairman of the China Iron and Steel Association (CISA) emphasized the importance of leading manufacturers to adjust production according to demand.
Despite these challenges, China's steel exports remain resilient. March exports reached 9.89 million tons, the highest monthly figure since July 2016, with a total of 25.8 million tons in the first quarter.
China's steel demand is expected to decrease by 1.7% this year.
In conclusion, the US tariff increase may not significantly impact China's steel industry. Larger concerns revolve around the decline in domestic demand and global trade tensions.
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