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Try the Free AI Search EngineAsia Steel: China Production Dip Offset by Exports; Vietnam Stable Amidst Global Slowdown
In Asia, overall steel production is under pressure despite regional variations. According to “Global steel production fell by 5.9% y/y in October” and “Global steel production fell by 5.9% in October%“, China experienced a significant decline in output. The satellite data reveals a recent drop in overall Asian steel plant activity, but no direct relationship to the news articles can be established.
Monthly Steel Plant Activity in Asia
The mean steel plant activity in Asia decreased significantly to 23% in October, a notable drop from 40% in August. Hoa Phat Hai Duong Steel plant in Vietnam showed a consistently stable activity level around 51-52% throughout the observed period. Jilin Jianlong Steel Co., Ltd. in China, despite remaining the most active, experienced a gradual decline from 74% in June to 67% in October. Baowu Group Echeng Iron and Steel Co., Ltd. in China increased its activity from 29% in June/July to 44% in October.
Hoa Phat Hai Duong Steel plant, a Vietnamese integrated steel producer with a 2.5 million tonne BOF capacity, has maintained stable activity around 51-52% from July to October. This stability occurs even as overall Asian activity declines, per the satellite data. No direct connection between this stable activity and the news articles can be established.
Jilin Jianlong Steel Co., Ltd., a Chinese integrated steel plant with a 3 million tonne BOF capacity, exhibited a gradual decline in activity, falling from 74% in June to 67% in October. This slight decline aligns with the broader trend of decreased Chinese steel production reported in “Global steel production fell by 5.9% y/y in October” and “Pressure on steel supplies to China remains despite falling production“, specifically China’s 12% drop in October.
Baowu Group Echeng Iron and Steel Co., Ltd., another Chinese integrated steel plant, boasts a 4.4 million tonne BOF capacity. Its activity has steadily increased from 29% in June/July to 44% in October. This increase occurs amidst the reported overall Chinese production decline, suggesting regional variations within China; no direct connection to the news articles can be established.
The “Pressure on steel supplies to China remains despite falling production” article highlights that despite falling production in China, exports have increased. Given the activity decline at Jilin Jianlong Steel Co., Ltd., combined with rising Chinese exports, steel buyers should anticipate potential shifts in sourcing strategies from Chinese suppliers. Given the consistent activity at Hoa Phat Hai Duong Steel plant, steel buyers should consider diversifying their supply base to include Vietnamese suppliers to mitigate risks associated with Chinese production fluctuations. Procurement analysts should closely monitor Chinese export data and regional production variations to anticipate pricing pressures and potential supply disruptions.