[SMM Analysis] The supply-demand imbalance in construction steel is showing signs of emerging this period.

The South Korean government, through its Ministry of Trade, Industry and Energy (MOTIE), has officially requested the European Commission to ensure fair treatment and preserve historical tariff-rate quota (TRQ) volumes for Korean steelmakers under the EU's newly adopted steel trade protection framework set to take effect on July 1, 2026. The revised EU system mandates a severe 47% reduction in global tariff-free import quotas to an annual ceiling of 18.3 million metric tons (mt), alongside doubling the punitive duty to 50% for any volumes exceeding specified limits. South Korea emphasized that its steelmakers, who heavily supply the European automotive and consumer appliance supply chains with high-end flat products, should not be unfairly penalized by anti-circumvention measures designed to target global overcapacity actors. The market impact indicates an escalating diplomatic and trade policy friction surrounding the EU's highly restrictive single market barriers.

According to preliminary data from the Turkish Statistical Institute (TUIK), Turkey's iron ore imports experienced an explosive growth in the first quarter of 2026, surging by 33.9% year-on-year to hit 2.88 million metric tons (mt), while the total import value advanced by 29.8% to $372.10 million. Brazil consolidated its position as the undisputed top supplier, exporting 1.42 million mt during the quarter, representing a steady 15.6% increase year-on-year. Notably, Norway and Russia recorded massive expansions to gain substantial market shares: imports from Norway skyrocketed by an unprecedented 194.5% year-on-year to reach 318,400 mt, while Russian shipments jumped by 142.1% year-on-year to 522,600 mt, successfully replacing traditional volumes from Ukraine and Sweden. The market impact demonstrates a rapid production recovery among Turkish integrated blast furnace steelmakers who are aggressively restocking premium raw materials. This strategic shift toward Norwegian and Russian origins highlights a deep restructuring of Turkey's merchant ore procurement, which is expected to provide firm structural support for global high-grade iron ore and pellet price benchmarks as regional steel utilization rates climb.

The US Department of Commerce and the US International Trade Commission (USITC) have announced the full continuation of existing anti-dumping (AD) and countervailing duty (CVD) orders on prestressed concrete steel wire strand (PC strand) imported from Argentina, Colombia, Egypt, the Netherlands, Saudi Arabia, and Taiwan. This extension follows a formal sunset review initiated on December 1, 2025, where the agencies determined that revoking the duties would directly lead to a recurrence of material injury to the domestic industry within a short-term timeframe. The existing duty rates, which include restrictive punitive customs margins varying by origin, will remain in force for an additional five-year period. The market impact outlines a prolonged protective environment for North American structural wire and long product manufacturers. By maintaining these strict trade friction barriers, the US continues to insulate its domestic construction supply chain from non-FTA competitive inflows, compelling global PC strand producers to redirect their surplus capacities to more accessible regional markets.