On August 12, the China-US Joint Statement from the Stockholm Economic and Trade Talks was released. According to the joint statement, the United States suspended its additional 24% tariffs on Chinese goods for 90 days (retaining 10%), and China simultaneously suspended its 24% tariffs on US goods (retaining 10%).

What impact will this significant news have on steel prices?

ROYAL NEWS

The suspension of some tariffs by China and the United States will boost steel market sentiment and ease export pressure in the short term, but the upward potential of steel prices remains constrained by multiple factors.

On the one hand, the suspension of the 24% tariff will help stabilize steel export expectations (especially indirect trade with the US). Combined with price increases by domestic steel mills and production restrictions in Tangshan and other regions, this may support short-term fluctuations in steel prices.

On the other hand, the US's retention of the 10% tariff and anti-dumping measures by multiple countries continue to suppress external demand. Coupled with high domestic inventories (a weekly increase of 230,000 tons in the five major steel products) and weak end-user demand (lack of volume in real estate and infrastructure projects), steel prices lack the momentum for continued growth.

The market is expected to experience a weak rebound supported by costs. Future trends will depend on actual demand during the golden September and silver October shopping season and the effectiveness of production restrictions.