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Positive Trends in Asia’s Steel Market Amid Rising Demand and Production Activity

Recent developments in Asia’s steel market signal optimism, driven by production surges and strategic adjustments from key players. China’s Baosteel Hikes January 2026 Steel Prices Amid Rising Raw Material Costs and Market Optimism notes rising steel prices due to increasing demand and raw material costs. Concurrently, India increased its rolled steel exports by 33% y/y in April-December reflects India’s enhancing production capabilities and export trajectory, confirmed by observed satellite activity data in steel plants across the region.

Bar chart and satellite map of steel production activity in Asia

Kim Chaek Iron and Steel Complex maintained impressive activity levels at 81%, showing resilience despite fluctuations in the regional mean. Notably, it aligns with China increased steel exports by 7.5% y/y in 2025,” indicating external demand support. However, the activity fell slightly to 77% in January amid seasonal slowdowns.

Shaanxi Huaxin Special Steel Group demonstrated reduced activity with fluctuating figures, peaking at 57% in August but dropping to 45% by year-end. No direct connection to specific news articles could be established for these changes.

Conversely, Jianglong Acheng Iron & Steel Co.’s relative stability at 58% suggests steady demand, corroborated by India’s export increase, driving the regional market’s positive sentiment.

Given these observations:
– The potential for supply disruption exists primarily in Shaanxi Huaxin, where activity trends remain inconsistent. Buyers should monitor this plant closely as fluctuations may affect pricing strategies.
– Steel buyers are encouraged to secure long-term contracts with established exporters like India, whose dramatic export increases reflect a strong production strategy and resilience against cheaper imports as outlined in “India increased its rolled steel exports by 33% y/y in April-December.”

In conclusion, the prevailing market sentiment in Asia remains positive, thanks to rising demand and strategic pricing adjustments indicating a robust outlook for steel procurement professionals.