Chinese steelmaking raw material prices fell on Wednesday as a Sino-U.S. trade row escalated, focusing concerns about the potential for damage to the world's No.2 economy.
Chinese steelmaking raw material prices fell on Wednesday as a Sino-U.S. trade row escalated, focusing concerns about the potential for damage to the world’s No.2 economy.
Washington on Tuesday said it would impose a 10 percent tariff on an extra $200 billion worth of Chinese imports, including hundreds of food products as well as tobacco, coal, chemicals, and consumer electronics.
Steelmaking raw ingredients, which are typically more sensitive to market news than steel prices, fell amid a broad commodity selloff.
The most-active iron ore contract for September delivery on the Dalian Commodity Exchange dropped 1.3 percent to 455 yuan ($68.21) a tonne as of GMT 0201.
Dalian Coking coal fell more than 2 percent, while coke prices slipped 0.5 percent.
“The most direct trigger for the selloff is the escalated trade war between the U.S. and China, stoking anxiety among investors,” said Richard Lu, steel analyst at CRU in Beijing.
“But the real impacts of the trade row still need to be assessed.”
Shanghai benchmark construction steel rebar futures edged up 0.3 percent to 3,871 yuan a tonne, after dipping as much as 0.8 percent during early trading.
Three steel mills in China’s top steelmaking Tangshan said they had not received any official notice to cut production, following a local website report on Tuesday that the city planned a new round of output curbs this month to boost air quality.
The Tangshan government declined to comment on the report.
Benchmark steel billet prices in Tangshan rose 50 yuan to 3,680 yuan a tonne on Tuesday, while spot steel product prices rose 0.5 percent to 4,312.22 yuan a tonne, data from Mysteel consultancy showed.
Wuhan Iron and Steel co, now part of China’s No.1 steel maker China Baowu Steel Group Co, said in a statement on Tuesday that it will raise wire rod prices for August delivery by 100 yuan a tonne.