The proposal by President Trump to slap a 25% tariff on all steel products imported in the US by all countries has raised concerns in an otherwise strong global steel market. It is too soon to understand the actual impact of such a proposal on the global markets. it is interesting to note however that the decision is set to come at a time when the sector continues to enjoy a good run, both in terms of prices and margins for steelmakers.

Last week iron ore held firmly at above $78/tonne cfr Qingdao, continuing the recovery initiated at the end of October 2017. The iron ore price remains some $10 below the levels registered in March 2017, but market sentiment is good. Industry observers in China are noticing that steel demand is not picking up as much as anticipated, indicating a possible drop in prices. Nevertheless for the moment the markets are holding firm and awaiting more clarity.