Published by:Zihuan Pan<>
3 Jun 2025 @ 10:26 UTC
Chinese steel hot-rolled coil prices continued to fall on Tuesday June 3, the first trading day after the holiday-extended weekend, weighed by lingering concerns over softening demand, high supply, resurfaced concerns over tariff turmoil and dismal economic data, sources said.United States President Donald Trump on Friday May 30 said that he would double tariffs on steel imports to 50% from June 4, to strengthen the local industry, which escalated trade tensions between the US and its major trading partners such as the European Union.
The trade relations between China and the US are also on the brink of deteriorating as Beijing countered accusations from the US on Monday that it had violated a temporary trade agreement between the two countries. Beijing also accused the US of breaking some of the terms under the deal.
Meanwhile, downbeat economic indicators also weighed on sentiment across the steel market after the Dragon Boat Festival holiday from May 31 to June 2, sources told Fastmarkets.
The official purchasing managers’ index (PMI) released on Saturday showed China’s manufacturing activity contracted for a second straight month in May, although it edged slightly higher to 49.5, from 49 in April, according to the National Bureau of Statistics.
Other factors that weighed on prices include seasonally slowing steel demand, the ailing property sector and continued tariff turmoil, sources said.
Reducedcoking coaland coke prices also enabled mills to continue to log profits and keep them from lowering their output sharply, according to sources.
Domestic Fastmarkets’ price assessment forsteel hot-rolled coil domestic, ex-whs Eastern Chinawas 3,160-3,180 yuan ($440-442) per tonne on Tuesday, down by 20 yuan per tonne from 3,180-3,200 yuan per tonne on Friday May 30.
The latest assessment came in at 3,170 yuan per tonne at the midpoint, which is a new low not seen since September 24, 2024.
Export Fastmarkets calculated itssteel hot-rolled coil index export, fob main port Chinaat $443.75 per tonne on Tuesday, down by $3.25 per tonne from $447 per tonne on Friday.
The extended decline in Shanghai steel futures prices forced Chinese mills to further slash their HRC export offers on Tuesday, sources told Fastmarkets.
Small, privately-owned mills offered 3.0-3.5 mm thick, 1,250-1,500 mm wide SS400/Q235-grade HRC at $440-448 per tonne FOB China on Tuesday, down from $445-450 per tonne FOB on Friday.
Some larger, state-owned mills refrained from giving their HRC export offers for the new week, given the decline in futures prices, while some lowered their offers to around $445 per tonne FOB China at base prices on Tuesday, down from $460-475 per tonne FOB a week earlier.
Trading for Chinese HRC exports remained muted on Tuesday, on the back of uncertainty surrounding the market, sources said.
Green steel Fastmarkets’ assessment offlat steel reduced carbon emissions, daily inferred, exw Chinawas 3,160-3,730 yuan per tonne on Tuesday, down by 20 yuan per tonne from 3,180-3,750 yuan per tonne on Friday.
This was assessed based on Fastmarkets’ fortnightly price assessment offlat steel reduced carbon emissions differential, exw China, which calculates the premium for flat-rolled reduced carbon emissions steel over products produced from the traditional blast furnace-based route and came in at 0-550 yuan per tonne on Friday May 23.
Market chatter Let’s see how the major export markets such as Vietnam will fare after Trump doubled the steel tariffs. South Korea and Japan will likely have to divert part of their cargoes to markets such as Southeast Asia, a trader in Taiwan said.
Shanghai Futures Exchange The most-traded SHFE October HRC futures contract closed at 3,052 yuan per tonne on Tuesday, down by 24 yuan per tonne from the closing price of 3,076 yuan per tonne onMay 30.