Chinese steel prices have spiked again in July, reaching Rmb3,745/tonne (US$553/tonne) at the end of the month. Demand in construction has done well in the first half of the year. It drew strength from high growth in the Road-and-Belt-initiative provinces and destocking in lower-tier satellites cities. Additional price support came from induction furnace closures. As demand in construction is stronger than expected, we have revised our forecast up. July was not as generous to steelmakers in the US and Europe as it was to Chinese producers. Most prices fell across the board in Europe and the USA, despite higher trade barriers imposed, expected or rumoured in both regions. In the United States, protectionism is proving more difficult to achieve than the initial deadlines. In Europe, We expect steel use to remain higher than last year through H2, though seasonal downturn will soon take hold.