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Try the Free AI Search EngineAsia Steel Market: EV Sector Investments Drive Optimistic Outlook Amidst Fluctuating Plant Activity
Asia’s steel market displays a very positive sentiment driven by investments in electric vehicle (EV) manufacturing, particularly in China and India. The news of “ANDRITZ to Supply Silicon Steel Processing Plant to ArcelorMittal/China Oriental Group” and “Danieli to supply tandem CR mill for ArcelorMittal Jinxi EV project in China” highlights the focus on high-grade silicon steel production. These developments, however, do not show any immediately obvious direct correlation with the satellite-observed plant activity levels across all observed plants in Asia.
The average steel plant activity in Asia peaked in May 2025 at 43%, before declining to 31% in August 2025. State Company for Iron & Steel Basra plant activity remained relatively stable, fluctuating between 45% and 47% throughout the observed period, consistently above the average Asian activity. Tung Ho Steel Taoyuan Plant shows more volatility, peaking at 63% activity in August, a considerable increase from 54% in February. Tata Steel Kalinganagar’s activity also experienced fluctuations, reaching 56% in August, which is one of the highest values in all observed time.
State Company for Iron & Steel Basra plant is an electric arc furnace (EAF) based plant in Basra, Iraq, with a crude steel capacity of 500 thousand tonnes per annum (ttpa), primarily producing semi-finished products like billets. The plant’s activity remained consistent and above the Asian average, varying within a narrow range. No direct link to the provided news articles can be established, indicating its operations are likely independent of the EV-focused investments mentioned.
Tung Ho Steel Taoyuan Plant, located in Taiwan, Province of China, operates an EAF with a capacity of 1200 ttpa, producing both semi-finished (billets) and finished rolled products (H-beams). The plant demonstrated a notable increase in activity from 54% in February to 63% in August. Again, no direct connection can be established to the provided news articles.
Tata Steel Kalinganagar steel plant in India is an integrated BF-BOF plant with a capacity of 3000 ttpa. This plant’s activity showed a rising trend, peaking at 56% in August. The news of “India’s MSSSL orders advanced blooming mill from Danieli” points to a broader investment trend in the Indian special steel sector; while MSSSL and Tata Steel are distinct entities, this reinforces the optimistic growth trajectory in the wider Indian steel market.
Based on the provided data and news:
- Potential Supply Disruptions: The observed decline in average steel plant activity in August across Asia, coupled with relatively stable production at the Basra plant in Iraq, could create localized shortages. Tata Steel Kalinganagar steel plant in India showed growth and investment trends, indicating possible pressure on local supply chains and prices in the longer term.
- Recommended Procurement Actions: Steel buyers focusing on high-grade silicon steel for EV applications should proactively engage with ArcelorMittal Jinxi and ANDRITZ to secure supply contracts, considering the planned capacity expansions. Buyers sourcing billets and H-beams from the Tung Ho Steel Taoyuan Plant need to closely monitor activity levels and potentially diversify suppliers to mitigate risk given the plant’s recent increased volatility in activity. The Tata Steel Kalinganagar steel plant is focused on growth; steel buyers should carefully monitor this development, but do not need to take any action at this time.