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Positive Outlook for Asia’s Steel Market Driven by Activity Increases and Export Trends

Growing activity levels in Asia’s steel sector underline a positive market sentiment, particularly following the publication of Turkey’s welded pipe exports up 0.5 percent in 2025. Concurrently, observed satellite data from key steel plants supports this optimism, indicating recovery in production levels despite some fluctuations.

Recent data reveals a significant rebound in plant activity, notably in Shandong Shouguang Juneng Special Steel Co., Ltd. This plant experienced a growth from 56.0% in September to 59.0% in January 2026. This increase coincides with the broader market narrative as reflected in the article regarding Turkey’s export performance, although no direct link can be derived from Turkey’s performance to the specific operational metrics in China.

In comparison, JFE East Japan Works (Chiba) maintained high activity levels, peaking at 52.0% as of February 2026. This stability aligns with the upbeat market sentiment as rising demand in infrastructure and automotive sectors increases this plant’s output. The Baowu Group Echeng Iron and Steel Co., Ltd. however, observed a downturn to 34.0% by February 2026, a notable drop after a peak of 50.0% in January. This decline may reflect a supply timing issue or market adjustment, albeit no explicit connections to current news were established.

Given these insights, buyers should focus on procurement strategies aimed at securing supply from Shandong Shouguang Juneng, where activity is on an upward trend, especially in high-quality carbon and alloy steel products. Notably, capacity enhancement initiatives in Turkey suggest a rising demand for welded pipe exports — a trend steel buyers should monitor for potential engagement in sourcing from Turkey. Conversely, those needing products from Baowu Group should prepare for potential volatility, considering their recent operational decline, which may result in supply disruptions.