Shares of Chinese steelmakers slide as Trump's fresh tariffs add uncertainty on exports (updated)

Angang Steel Co

11/02/2025 08:32

(Updates on market close, adds analyst comment in paragraphs
9-10, adds two graphics)
    By Amy Lv and Lewis Jackson
       BEIJING, Feb 11 (Reuters) - Shares at major listed
steelmakers in top producer China slid on Tuesday as fresh
tariffs by U.S. President Donald Trump stoked concerns over
possible impact on steel exports this year.
    Trump substantially raised tariffs on steel and aluminium
imports on Monday to a flat 25% "without exceptions or
exemptions" in a move to aid struggling domestic industries, but
which increases the risk of a multi-front trade war. 
    Shares at Baoshan Iron and Steel  600019.SS , HBIS Co
 000709.SZ , Angang Steel  000898.SZ , Hunan Valin Steel
Co 000932.SZ , Shandong Iron and Steel Co  600022.SS , Jiangsu
Shagang Co  002075.SZ  slipped between 0.14% and 2.63%.
    Steel prices on the Shanghai Futures Exchange ended daytime
trade with losses while the CSI steel index  .CSI930606  dipped
0.52%. 
    Fears mounted that new tariffs will add more uncertainty to
China's steel exports this year, already threatened by mounting
trade tensions, although the impact on direct Chinese steel
exports to the U.S. is limited given the small share of the
trade flows. 
    Last year, China's direct steel exports to the U.S. stood at
890,000 metric tons, just 0.8% of its total exports that hit a
nine-year high at 110.72 million tons, customs data showed. 
    China's robust steel exports had helped to offset dwindling 
domestic demand, dragged by the protracted property crisis and
the lower-than-expected consumption from the infrastructure
sector last year. 
    "If the tariffs were to be implemented stringently, both
direct exports and transit trade will feel some impact,"
analysts at consultancy Fubao said in a note.
    Transit trade, or transshipment, refers to the process of
countries buying products - in this case, cheap steel from China
- and reselling those cargoes to other countries such as the
U.S. to avoid tariffs or other restrictions.
    "In the medium to long term, it's bad news for the global
steel market, as the reduction in U.S. steel imports will
eventually hit trading flow," said Pei Hao, a senior analyst at
international brokerage Freight Investor Services (FIS).
    "Some countries doing the transshipment will have to scale
down buying from major steel producers."
    A manager at an East China-based steelmaker, requesting
anonymity as he is not authorised to speak to media, cautioned
of "a butterfly effect on the market, which takes time to
manifest." 
    "The bad news has not started yet, so we need to be prepared
from now," the manager said, declining to disclose further
details. 
    
  
  
  

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Shares of Chinese steelmakers slide as Trump's fresh tariffs add
uncertainty on exports    https://tmsnrt.rs/4gGHxTs
Steel prices broadly down    https://tmsnrt.rs/40RnrjE
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Amy Lv and Lewis Jackson; Editing by Lincoln
Feast.)
 ((Amy.Lv@thomsonreuters.com;))