Decline in Thermal Activity Signals Supply Risks at Chinese Steel Plant
Introduction
Sansteel Minguang Co., Ltd. in Fujian, China, owned by the Sansteel Group, has an annual production capacity of 6,800 kilotonnes of crude steel. The facility produces key steel products such as steel plates, round bars, and construction steel, serving critical sectors including building and infrastructure, transport, and tools and machinery.
Activity Change Overview
Recent data indicates a 7.02% decline in thermal activity at the plant, raising concerns among market analysts regarding potential supply chain impacts. The decreasing trends are especially evident in the operation of several Blast Furnaces, as observed in the thermal activity records from November 2024 through April 2025.
Thermal Activity Data
As illustrated in the table, there has been a consistent drop in performance from March 2025 onwards, particularly in the operations of Blast Furnaces where activity levels fell sharply.
Implications for Steel Buyers and Market Analysts
This decline in operational activity raises supply concerns within the industry. The reported production decreases coincide with wider market dynamics, such as Baoshan Iron & Steel’s calls to avoid strict production controls to stabilize pricing amid excess capacity (as discussed in Chinese steel giant urges to avoid strict production controls).
The potential bottlenecks resulting from the lowered output can lead to price risks for steel products, as demand may outpace supply, complicating procurement strategies for buyers. Analysts are advised to monitor these trends closely, particularly in the context of the rising emissions reported across the industry, as noted in the articles Emissions in China’s steel industry increased by 9.7% y/y in March and Chinese metallurgy increases emissions, but improves environmental performance.
Understanding these shifts can help stakeholders navigate the increasingly complex landscape of steel production and pricing strategies in response to operational changes at Sansteel Minguang and similar facilities.