🔹 Market Analysis

1️⃣ U.S. Tariff Developments:

  • The White House has officially stated that the rumor of a “90-day tariff suspension” on certain countries is fake news.
  • In a recent tweet, President Trump threatened that if China does not cancel its 34% countermeasure tariff on U.S. goods, an additional 50% tariff will be imposed on Chinese products from April 9. This implies that, starting April 9, the total U.S. tariff rate on Chinese goods could reach as high as 104%.

2️⃣ Domestic Financial Moves:

  • Major state-backed companies—Central Huijin, China Chengtong, and China Guoxin—have announced plans to increase their holdings in Chinese equities by over 100 billion RMB, signaling an effort to stabilize domestic financial markets.

3️⃣ European Countermeasures:

  • The European Union is planning to impose a 25% counter-tariff on U.S. goods in two phases, with the first phase starting on April 15 and the second on May 15.

🔹 Overall Outlook & Trading Strategy

The ongoing tariff war shows no signs of abating, and panic sentiment continues to pervade the markets. Despite recent short-term stability, steel prices are expected to remain weak for a couple more days before further downward pressure sets in. In this environment, market participants should be prepared for additional declines, as macroeconomic and policy uncertainties weigh heavily on steel market fundamentals.

Traders should maintain a cautious stance and closely monitor upcoming policy announcements and global market reactions as these factors will likely dictate the next phase of price adjustments in the steel sector.

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