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Try the Free AI Search EngineAsia Steel Downturn: Output Declines and Plant Activity Slows in July 2025
Asia’s steel market faces headwinds as production declines, impacting regional plant activity. According to “World crude steel output down 1.3 percent in July 2025”, Asia’s crude steel output fell by 1.9% in July. This production decrease in Asia does appear to be reflected in the satellite-observed reduction of the mean steel plant activity within Asia.
The mean steel plant activity in Asia peaked in May at 43% and subsequently declined to 35% by the end of August, indicating a significant slowdown in overall steel production activity. The Sabzevar Steel Complex showed the highest activity levels throughout the period, starting at 57% in March and gradually decreasing to 51% by August. In contrast, Bonab Steel Complex consistently exhibited the lowest activity levels, ranging from 10% to 19%. Van Steel Kurdistan plant maintained a relatively stable activity level around 27-28% throughout the observed period. Khayyam Steel Neyshabour plant experienced a consistent decline in activity from 32% in March to 22% in August. The sharpest decline can be observed between July and August, dropping from 40% to 35%.
Bonab Steel Complex, an EAF-based steel plant in East Azerbaijan with a crude steel capacity of 1.4 million tonnes, has consistently shown the lowest activity levels compared to other plants, peaking at only 19% in June and declining to 17% in August. No direct connection to the provided news articles can be established.
Van Steel Kurdistan plant in Iraq, employing 2000 workers and utilizing EAF technology with a crude steel capacity of 750,000 tonnes, shows a stable activity level around 27-28% during the observed period. No direct connection to the provided news articles can be established.
Sabzevar Steel Complex, an EAF-based plant in Razavi Khorasan with a crude steel capacity of 800,000 tonnes, started with high activity levels (57% in March) but experienced a gradual decline to 51% by August. No direct connection to the provided news articles can be established.
Khayyam Steel Neyshabour plant, also in Razavi Khorasan, has a crude steel capacity of 500,000 tonnes utilizing DRI and EAF technology. The plant exhibited a consistent decline in activity, dropping from 32% in March to 22% in August. No direct connection to the provided news articles can be established.
The reported 1.9% decline in Asia’s steel output as cited in “World crude steel output down 1.3 percent in July 2025”, combined with the observed drop in average Asian steel plant activity from 40% to 35% between July and August, indicates a potential for localized supply disruptions. Steel buyers should prioritize securing supply from regions and plants exhibiting stable or increasing production. Given the observed activity decline at Khayyam Steel Neyshabour plant, steel buyers who depend on Khayyam Steel Neyshabour plant should consider diversifying their sources to mitigate potential supply risks.