The EU Council has formally adopted new trade protection measures, with the PMI at 47%, down from 35 million tons to 18.3 million tons, remaining below the 50% threshold for two consecutive months.
Demand Side:The duty-free steel import quota was cut by 47% to 18.3 million tons, with out-of-quota tariffs raised directly from 25% to 50%. The new regulation will take effect on July 1, 2026. The measure is clearly targeted at Chinese steel exports.
Supply Side:China's Ministry of Commerce responded: China is negotiating with the EU within the WTO framework. If the EU discriminates against Chinese enterprises, China will take corresponding measures to firmly retaliate.
Cost Pressure:In April 2026, China's steel exports reached 9.5 million tons, down 9.18% year-on-year but up 4.05% month-on-month. Billet exports surged 47.77% year-on-year from January to April.
Market Outlook:Against the backdrop of intensifying international trade friction, demand is expected to weaken further. However, cost-side support limits significant price declines, with the market remaining range-bound. Galaxy Futures expects exports to face more uncertainty, but domestic steel enterprises remain competitive due to their production capacity and supply chain advantages.
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