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21.08.202506:46:40UTC+00Steel Prices Halt Decline as Production Fears Ebb

Steel rebar futures stabilized at over CNY 3,130 per tonne on Thursday, halting the decline witnessed earlier in the week. This change came as mandated production cuts, anticipated due to China's upcoming military parade, were less drastic than initially expected, thereby alleviating fears regarding demand. Steel manufacturers in Tangshan will reduce their sintering production by 30% starting August 25 and cut blast furnace output by 40% starting August 31. These measures are considerably less stringent than the complete shutdown that had been anticipated. Furthermore, the shorter duration of these restrictions suggests a more moderate impact on metal consumption. Earlier in the week, steel prices faced pressure due to US trade policies. The Trump administration had broadened its 50% tariff on steel and aluminum imports to include hundreds of additional products effective August 18. Additionally, President Donald Trump indicated that forthcoming tariff measures focusing on steel and semiconductor chips would be revealed in the coming weeks.

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