President Donald Trump escalated trade tensions on Friday by announcing an increase in tariffs on steel and aluminum imports, doubling them to 50%, with the changes set to take effect on June 4. This decision prompted swift criticism from significant trading partners, including the European Union, which cautioned that such actions undermine the pursuit of a “negotiated solution” in the ongoing trade dispute. In China, steel rebar futures settled at approximately CNY 3,020 per tonne at the conclusion of May, marking eight-month lows amid persistent concerns regarding demand. On June 2, Shanghai’s futures markets were closed due to a national holiday, resulting in minimal immediate price movements. Further contributing to the downward pressure on steel prices, the Chinese government announced a ban on the sale of homes before they are completed. This significant policy shift could drastically limit a critical funding source for real estate developers. Such a measure poses the risk of exacerbating financial strains across China’s property sector—one of the most significant consumers of steel—and may further suppress demand in the foreseeable future.
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