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Negative Trends in Asia’s Steel Market: Satellite Data Reveals Declining Plant Activity

Asia’s steel market is witnessing significant declines in plant activity levels, primarily attributed to ongoing geopolitical tensions. Events detailed in Liveblog USA unter Trump: Trump: Ohne Deal wird es „sehr traumatisch“ für Iran | FAZ and Liveblog USA unter Trump: Trump – Machtwechsel im Iran wäre „das Beste“ | FAZ may have contributed to these trends; however, no direct linkage with plant activity was established.

Bar chart and satellite map of steel production activity in Asia

The Baku Steel Company observed a decrease from 53% in January 2026 to 49% in February 2026, aligning with a broader negative market sentiment but lacking a direct correlation to the cited news articles. Nippon East Japan Works has remained relatively stable at around 30%, while Neelachal Ispat Nigam has fluctuated between 67% and 71% over the last six months, indicating consistent performance.

The notable decline in activity across these plants, particularly at the Baku Steel Company where the drop points to an overall depressed market, suggests potential supply disruptions. Steel buyers may find it prudent to manage inventories carefully and engage with suppliers proactively to mitigate potential shortages.

Given these conditions, steel procurement professionals are advised to closely monitor geopolitical developments and consider diversifying supply chains or negotiating contracts that allow for flexible terms to respond to changing production landscapes effectively.