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Positive Steel Market Outlook in Asia: Demand Surge and Steady Prices

Asia’s steel market continues to exhibit positive momentum driven by a variety of factors. As detailed in the article “Exports of iron ore and pellets from India rose by 40% y/y in April,” heightened demand from China is noted, aligning with observed increases in satellite data showing rising activity levels in several key steel plants. This correlates with a strengthened market sentiment, bolstered by increasing hot rolled steel strip prices, as reported in the article “MOC: Average hot rolled steel strip price in China up 0.3 percent in Apr 27-May 3, 2026.”

The Atibir Industries steel plant in Jharkhand has shown significant stability but reported a slight decrease in activity to 50% in May from 53% in April. This aligns with a broader market trend highlighted in “China’s steel output fell by 4% y/y in January–April,” indicating regional challenges affecting production dynamics.

In contrast, the Rashmi Metaliks Kharagpur steel plant peaked at 95% in February but has since declined to 77% in May. This decline may reflect adjustments in production strategies due to fluctuating market demands and competition. Nippon Kyushu Works experienced a steady decline, maintaining a consistent low activity level at 36%.

In terms of market implications, steel buyers should carefully monitor the fluctuations in plant outputs, especially in light of increased iron ore prices with a 3.9% rise since early May as reported in the article “Iron ore prices have risen by 3.9% since the beginning of May.” The correlation between rising iron ore exports and improved demand suggests potential supply stability going forward, particularly for those sourcing from Indian producers.

Recommended actions for procurement professionals include actively engaging with suppliers from India, particularly regarding iron ore and pellets, as improved export conditions may mitigate potential shortages. Continuously assess the activity level at Rashmi Metaliks and expect fluctuating capacities as they navigate market demand changes. Steel buyers should also be prepared for price adjustments as indicated by ongoing price increases in key finished products, which may reflect broader supply-demand dynamics tied closely to recent geopolitical developments.