Steel markets have continued to diverge in April: strong in China, weak in Europe, and hesitant in the US. In China, the government stimulus is starting to revive steel demand, with indicators pointing towards a resolution of the manufacturing crisis and a strengthening of the all-important construction sector. Meanwhile, the US and Europe have hit a soft patch. In the US, 232 tariffs pushed import competition downstream dampening the outlook for fabricators, an important component of real demand growth. In the EU, the deteriorating outlook in Italy and Poland is eroding construction confidence, manufacturing PMI is firmly pointing to contraction, and competition from troubled steelmakers in Turkey and Iran is dampening the price outlook.