China's steel exports have seen a significant increase in the first half of 2025, driven by weak domestic demand, particularly from the real estate sector. Exports reached 58.1 million tons, marking a 9% year-over-year increase, even as domestic steel production declined by 3%. The primary factor behind this export surge is a 24.27% drop in housing starts during the first quarter of the year, which has compelled Chinese steel producers to offload excess capacity to international markets. This outflow of steel has created trade tensions and is causing supply chain realignments globally. Notably, a new EU-U.S. Steel Trade Agreement, which imposes a 50% tariff on steel and aluminum, is expected to redirect Chinese steel exports towards the Eurozone, with a projected 7-10% growth in 2026. This shift is also affecting logistics, with transatlantic shipping freight rates increasing by 30% due to rerouted cargo. Despite the export surge, China's iron ore imports in July were 104.62 million tons, a third consecutive month above 100 million tons, while port inventories remain historically low at 131 million tons, suggesting a strategic stockpiling effort.