With new steel tariffs imposed by the US, Chinese and ASEAN steel is becoming more expensive in the US. While China contributes only 2% of finished steel entering the US, Chinese items made from steel and aluminium – along with countless “transiting metals” – are likely to take a far greater share.
In fact, China was the second-largest source of imports of steel and aluminum products into the US in 2017, second to Canada but above Mexico. Should a strong uptick in US domestic steel production fill the gap, Chinese steel may be forced to retreat from the US market, meaning around 1 million mt would be redirected to Asia.
