China may increase steel production

Chinese steel futures were higher on Monday.

Steel demand in China's manufacturing sectors has become "very strong," according to expert Darwin Toh of Singapore-based data analyst Tivlon Technologies.

“Tivlon Technologies is also showing an upbeat outlook on steel companies' margins over the next 10 weeks,” Toh said.

While Vietnam has been the beneficiary of the trade war, and Formosa's largest steel mill, Tinh Steel, or FHS, is also considering suspending plans for a third blast furnace, according to the Nikkei Asian Review.

According to the FHS, the trade dispute could push cheaper Chinese-made steel products to Vietnam, the largest consumer of steel in Southeast Asia, and cause prices to fall.