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Try the Free AI Search EngineAsia Steel Market Faces Downturn Amid US Shutdown Uncertainty
In Asia, the steel market is exhibiting a negative sentiment, influenced by global economic uncertainties exacerbated by the US government shutdown. The provided news articles, while not directly related to Asian steel plants, create an environment of global market instability reflected in observed plant activity declines.
The mean steel plant activity in Asia has decreased significantly to 28% in October from a high of 43% in May. JFE East Japan Works showed a decrease from 66% in July to 51% in September. JSPL Odisha experienced a sharp drop from 70% in April to just 11% in August, recovering slightly to 53% in October. GHC Emirates Steel Industries Abu Dhabi plant showed the most stable high activity, remaining above 90% throughout the observed period and reaching 96% in both September and October.
JFE East Japan Works (Keihin) is an integrated steel plant with a crude steel capacity of 4.075 million tonnes, primarily using BF and BOF technologies to produce sheets, stainless steel, plates, and pipes. The plant’s activity decreased from a peak of 66% in July to 51% in September. The news articles about the US government shutdown, “Fed shutdown disrupts most USDA data releases” and “US gov shutdown lowers shroud on jobs, inflation data,” do not provide a direct explanation for the observed fluctuations in activity, but the climate of uncertainty may have prompted a slowdown in production.
JSPL Odisha steel plant, an integrated plant with both BF and DRI processes, has a crude steel capacity of 6 million tonnes, producing bars and plates for various sectors. It experienced a significant drop in activity, plummeting from 70% in April to just 11% in August before partially recovering to 53% in October. This substantial decrease in activity cannot be directly linked to the provided news articles regarding the US government shutdown.
GHC Emirates Steel Industries Abu Dhabi plant operates with DRI and EAF technologies, boasting a crude steel capacity of 3.5 million tonnes. The plant’s activity has remained consistently high, fluctuating slightly but staying above 90%. This stability suggests limited impact from the uncertainties related to the US shutdown reported in the provided news articles. There is no direct evidence linking its performance to the shutdown.
The US government shutdown introduces a degree of uncertainty into global markets, potentially affecting demand and prices, as evidenced by the news articles “Fed shutdown disrupts most USDA data releases” and “US gov shutdown lowers shroud on jobs, inflation data”. The observed decline in Asian steel plant activity suggests a cautious approach from producers in anticipation of potential market disruptions. Given the consistent high production at GHC Emirates Steel Industries Abu Dhabi plant, steel buyers should explore securing supply contracts with this producer to mitigate potential disruptions from other regional plants. In light of the JSPL Odisha steel plant production volatility, steel buyers should carefully review their reliance on JSPL Odisha steel plant and consider diversifying their supply sources. Given the limited visibility into the cause of the JSPL production disruptions, market analysts should investigate local Indian market dynamics and JSPL-specific operational issues to understand the causes of the steel mill’s volatility.