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Try the Free AI Search EngineAsia Steel Market Braces for Disruption Amidst US Tariff Uncertainty and Fluctuating Plant Activity
Asia’s steel market faces growing uncertainty due to recent US tariff actions and their legal challenges, impacting plant activity. The evolving trade landscape, shaped by policies as reported in “Trumps US-Zölle im Liveticker: Frist für neue US-Zölle gegen Indien abgelaufen | FAZ,” “Wie Trump die Wirtschaft umbaut – und wie die Märkte darauf reagieren,” “Trump’s tariff push overstepped presidential powers, appeals court says,” “US-Gericht erklärt Donald Trumps Strafzölle für illegal,” and “US-Berufungsgericht erklärt Großteil von Trumps Zöllen für unzulässig,” creates volatility. However, no direct, immediate link between these specific news items and the satellite-observed plant activity data could be established at this time.
Overall, the mean steel plant activity in Asia decreased from 40% in July to 34% in August. Kalyani Steels Hospet plant saw its highest activity level in July at 63%, while Nippon Sanyo Special Steel experienced a sharp decline from 51% in July to 45% in August. Erdemir Eregli steel plant activity remained stable at 81% from June through August.
Kalyani Steels Hospet plant, an integrated steel producer in India with a crude steel capacity of 860 ttpa, uses both BOF and DRI technologies. Its activity peaked at 63% in July, suggesting robust production of rolled bars and rounds for automotive and infrastructure sectors. The subsequent data for August is missing but this peak does not directly correlate with the news articles regarding US tariffs, and no direct connection could be established.
Nippon Sanyo Special Steel, a Japanese electric arc furnace (EAF) steelmaker with a crude steel capacity of 1596 ttpa, mainly produces billets, rolled products, tubes and bars. The plant’s activity experienced a significant drop from 51% in July to 45% in August. This decline is substantial and may reflect decreased demand or supply chain disruptions, but the available news does not explicitly explain this specific event. No direct connection to any of the news articles could be established.
Erdemir Eregli steel plant, a major integrated steel producer in Türkiye with a 4000 ttpa crude steel capacity based on BF/BOF process, maintained a consistent activity level around 81% between June and August. Its focus on flat steel products for automotive, building, and packaging sectors suggests stable demand in these areas. Despite the broader market uncertainties, this plant shows resilience, and no direct connection to the provided news could be established.
Given the court rulings against Trump’s tariffs (“US-Gericht erklärt Donald Trumps Strafzölle für illegal” and “US-Berufungsgericht erklärt Großteil von Trumps Zöllen für unzulässig“), buyers should anticipate potential price volatility if the Supreme Court takes up the case, creating a floor for steel prices. Given the mean plant activity decrease in Asia, and the uncertainty surrounding US tariffs, procurement professionals in sectors reliant on steel from Kalyani Steels (automotive, building, energy, steel packaging, tools and machinery, transport) should carefully evaluate their inventories and supply chain dependencies, and engage in short-term contracts to mitigate any disruptions.