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Try the Free AI Search EngineAsia Steel Market: Output Declines in China Offset by Stable Indian Production Amidst Price Pressures
In Asia, crude steel output from Chinese mills is declining, while other regional mills maintain steady activity. According to “CISA mills’ daily crude steel output down 0.9% in late June, stocks increase,” Chinese steel production is decreasing. Satellite data supports this, showing a continued drop in activity at WISCO Group Kunming Steel Co., Ltd. New District Branch, though a direct causal relationship cannot be established. Simultaneously, “China’s steel industry PPI down 10.3 percent in H1” indicates significant price pressures within the Chinese steel market.
Overall, the mean steel plant activity in Asia shows a significant drop in July to 22% after a period of fluctuations between 36% and 43% from January to May and a subsequent fall to 39% in June. Tata Steel BSL Dhenkanal plant consistently operated above the mean, with activity between 61% and 67% until July when no data is available. Hyundai Steel Dangjin plant also shows consistent activity, ranging from 54% to 58%, above the Asian mean. WISCO Group Kunming Steel Co., Ltd. New District Branch has shown a steady decline in activity from 35% in January to 28% in July, consistently below the Asian mean.
Tata Steel BSL Dhenkanal plant, an integrated steel plant in Odisha, India, utilizes both blast furnace (BF) and direct reduced iron (DRI) processes to produce 5.6 million metric tons of crude steel annually, alongside hot rolled coil, pipe, sheet, and cold rolled products. Activity at Tata Steel BSL Dhenkanal has remained consistently high between January and June. There is no available activity data for July. Given its stable output, no direct connection can be established with any of the provided news articles.
Hyundai Steel Dangjin steel plant, located in South Korea, is an integrated BF steel plant producing 16.6 million metric tons of crude steel annually, along with hot rolled sheet, cold rolled sheet, heavy plate, galvanized steel, and rebar for the automotive, building, and transportation sectors. The plant’s activity has been stable from January to July at 54-58%. No direct connection can be established with the provided news articles.
WISCO Group Kunming Steel Co., Ltd. New District Branch in China, produces 2.8 million metric tons of crude steel using the BF-BOF process. Its product range includes bar, wire, hot and cold-rolled strip, galvanized and color-coated sheet, and welded steel pipe. Satellite data shows a consistent decrease in activity at this plant throughout the observed period, dropping from 35% in January to 28% in June and July, aligning with the declining output reported in “CISA mills’ daily crude steel output down 0.9% in late June, stocks increase.”
Given the observed decrease in activity at WISCO Group Kunming Steel and the reported decline in Chinese steel PPI, steel buyers should closely monitor Chinese steel pricing and potentially diversify their supply sources to mitigate against potential supply disruptions. While Indian and Korean steel production appears stable, monitoring the price trends in China is crucial.