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Dr. Keyvan Jafari Tehrani, a senior expert on international steel markets, highlighted the impact of the recent US election results on the global and Iranian steel markets, underlining that Iranian analysts have urged Iran to maximise short-term export opportunities before Trump officially takes office and implements stricter policies.<\/p>\n
Speaking on Iran\u2019s local media channel, Iranian international iron and steel market analyst Dr. Keyvan Jafari Tehrani said that the unexpected results of the US elections and the economic strategies under Donald Trump have significantly affected global commodity markets. Following Trump\u2019s election, the Federal Reserve reduced interest rates to support commodity prices. There has been a general decline in prices across the steel supply chain and base metals.\u2019 Jafari Tehrani noted the following in his speech;<\/p>\n
Policies favouring the use of fossil fuels in the Trump administration have weakened demand for metals such as copper. This led to pessimism among market participants. While steel prices fell more sharply, prices of basic raw materials such as iron ore, coking coal and scrap also fell. This downward trend is expected to continue until Trump\u2019s official policy announcements after his inauguration.<\/p>\n
\ud83d\udd39China\u2019s Attitude and Reaction<\/strong><\/p>\n Despite the initial benefits of low steel prices, prolonged declines could damage China\u2019s production capacity. As the world\u2019s largest producer and consumer of steel, China faces difficulties in balancing short-term benefits with long-term impacts.<\/p>\n Although China has shown strategic patience in the face of US-China trade tensions, it is expected to act decisively in the coming months to mitigate potential economic impacts.<\/p>\n \ud83d\udd39Geopolitical and Commerical Dynamics<\/strong><\/p>\n Trump\u2019s policies aim to strengthen the US economy while strengthening geopolitical alliances, especially with Russia. In particular, there is speculation about deals involving reduced support for Ukraine in exchange for concessions in other areas, such as the oil and steel sectors. Russia\u2019s potential alignment with US policies could potentially crowd out China by increasing its market share in key sectors such as steel supplies to Saudi Arabia.<\/p>\n \ud83d\udd39Saudi Arabia\u2019s Steel Demand and Regional Impacts<\/strong><\/p>\n Saudi Arabia\u2019s infrastructure projects such as NEOM and Jeddah Tower require significant steel imports due to constraints on domestic production. Although Saudi Arabia claims higher production figures, discrepancies arise due to steel from joint ventures in Pakistan. Looking at the statistical figures, Saudi Arabia\u2019s steel production was declared at 18-18.5 tonnes. However, steel consumption figures were 24-24.5 million tonnes last year. These figures revealed that Saudi Arabia imported 6 million tonnes of steel. Since Pakistan and Saudi Arabia have two joint steel mills, the production made here causes Saudi Arabia\u2019s annual steel production figure to be high. This proved that Saudi Arabia\u2019s steel production is actually low. It meets its 6 million tonnes of steel needs from Turkey, Brazil and Russia.<\/p>\n \ud83d\udd39Iran\u2019s Export Difficulties and US Sanctions<\/strong><\/p>\n Iran, a major global steel producer, is facing increasing obstacles due to US sanctions. Restrictions on financial mechanisms such as the NIMA exchange have further hampered exports. Analysts urge Iran to maximise short-term export opportunities before Trump officially takes office and imposes stricter policies.<\/p>\n Global markets are increasingly affected by strategic manoeuvres between major players such as the US, China and Russia. The trade war between the US and China has intensified with Trump\u2019s strategic moves. The current US President Biden has not been able to counter these developments effectively. The manipulation of trade and production data by countries such as Saudi Arabia shows how political motivations shape market perceptions.<\/p>\n