International News 07 March 2025
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China to Cut Steel Production to Restructure Industry
China has announced plans to restructure its steel industry by reducing production, although no specific production reduction target has been set.As the world's largest producer and consumer of steel, China aims to promote industry restructuring through production cuts, with the objective of addressing overcapacity and tackling unfair competition through regulation and industrial upgrading.While the report does not specify the extent of the production cuts, there have been speculations that around 50 million metric tonnes of crude steel production will be cut. This move by China is seen as unexpected since the National Development and Reform Commission (NDRC) is proposing a steel production cut for the first time during the two annual sessions, and the response from China's state planning agency and the China Iron and Steel Association is still awaited.
Japanese Prime Minister: US Trade Tariffs Make Investment Difficult
Japanese Prime Minister Shigeru Ishiba has expressed concerns over the high tariffs imposed by the US administration, stating that they will make it difficult for Japanese companies to invest in the United States.Ishiba emphasised the need for generating funds for US investments and highlighted how Japanese investments benefit both Japan and contribute to job creation and the expansion of the US economy.A recent Reuters survey revealed that nearly 90% of Japanese companies anticipate that Trump's policies will negatively impact their business. In response to the situation, Ishiba has announced plans to dispatch the country's industry minister to the US for discussions with Trump administration officials to address these concerns.
Oil prices stabilise after falling in the previous 4 sessions, WTI to US$ 66.7 per barrel
Oil prices have stabilised after falling in recent sessions on the back of US tariffs on Canadian crude supplies. Tariffs on Mexican imports and plans by major oil producers to increase production are also making investors cautious. The price of Brent crude for May 2025 delivery rose by 0.61% to $69.72 per barrel, while West Texas Intermediate (WTI) crude for April 2025 delivery rose by 0.6% to $66.71 per barrel. Over the previous four sessions, Brent crude prices had fallen by 6.5% to their lowest level since December 2021, and WTI crude prices had fallen by 5.8% to their lowest level since May 2023. However, the fall in prices was partially mitigated by the US exempting carmakers from a 25% tariff and the possible removal of a 10% tariff on Canadian energy imports.