Iron Ore Prices Volatile; Market Outlook Weak Amid Production Changes

Mexico is formally seeking the removal of US Section 232 tariffs on steel and aluminum — currently set at 50% — as part of ongoing USMCA review negotiations. Mexico's Economy Minister Marcelo Ebrard described the 50% rate as unacceptable and without justification, following May 27-29 talks between Mexico's Ministry of Economy and the US Trade Representative. Mexico is also advocating for a regional approach to the automotive sector, citing deep North American production integration and existing USMCA rules of origin. Additional rounds of negotiations are scheduled for June and July. Separately, Mexico has already mandated that federal construction projects use only domestically produced steel.

[SMM Steel] Tata Steel expects India’s steel demand to grow by 7-8% annually over the next 20 years, supported by infrastructure development and industrialization. The company plans to expand its domestic steelmaking capacity to over 40 million tonnes per year and strengthen its presence in the Maharashtra market. More than 60-65% of Tata Steel’s annual capex budget of Rs 20,000 crore will continue to be allocated to India. Meanwhile, the company is enhancing supply chain diversification, scenario planning, and hedging strategies to manage geopolitical risks, while focusing on cost and commercial improvements in Europe amid weak demand and high energy costs.