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Try the Free AI Search EngineAsia Steel Market: Indian Production Holds Strong Amidst CBAM Uncertainty
Asia’s steel market presents a mixed picture. The stability of steel production in India contrasts with potential European supply chain shifts influenced by the Carbon Border Adjustment Mechanism (CBAM), as highlighted in “Steel quotas vanish fast for some products as EU buyers race ahead of CBAM.” While that article focuses on Europe, the trends it describes could affect Asian steel exports to Europe. No direct relationship could be established between this and steel plant activity changes in Asia.
The mean steel plant activity in Asia fluctuated, peaking at 43% in May before declining to 23% in October. Shandong Taishan Steel Group Co., Ltd. shows a consistent decline in activity, reaching a low of 13% in October, significantly below the Asian average. Tata Steel BSL Dhenkanal plant shows a stable activity level around 52-54%, consistently outperforming the Asian average. Guangxi Beigang New Material Co., Ltd. shows a decline, reaching 23% in October, also falling below the Asian average.
Shandong Taishan Steel Group Co., Ltd., an integrated steel plant in Shandong with a 5000ktpa crude steel capacity specializing in hot rolled coil and cold rolled coil production, has experienced a steady decline in activity, dropping to 13% in October. This downturn is not directly attributable to any of the provided news articles, but could reflect broader Chinese economic trends.
Tata Steel BSL Dhenkanal plant, an integrated steel plant in Odisha, India, with a 5600ktpa crude steel capacity producing hot rolled coil, pipe, and sheet, maintained a consistently high activity level around 53%, peaking at 54% in October. This stability contrasts with the European market concerns discussed in “European prices to rise, conditions remain difficult,” suggesting a degree of insulation from European market volatility.
Guangxi Beigang New Material Co., Ltd., an integrated steel plant in Guangxi producing 3400ktpa of crude steel, including cold rolled coil and hot rolled coil, saw its activity fall to 23% in October. While this decline is not directly linked to the provided news articles, the company’s production of hot-rolled and cold-rolled coil could make it vulnerable to shifts in global trade patterns caused by the CBAM, according to “Steel quotas vanish fast for some products as EU buyers race ahead of CBAM.”
Based on the high and stable activity at Tata Steel BSL Dhenkanal plant in India, coupled with concerns about European supply due to CBAM (“Steel quotas vanish fast for some products as EU buyers race ahead of CBAM“), steel buyers should:
- Explore long-term contracts with Tata Steel BSL Dhenkanal. The plant’s consistent activity suggests reliability, making it a potentially stable source of supply, especially for hot-rolled coil, pipe and sheet. The plant also has DRI capacity.
- Monitor the impact of CBAM on Asian exports. The filling of European import quotas suggests potential demand shifts that could affect Asian producers. Continuously analyze the activity of Guangxi Beigang New Material Co., Ltd, given its product portfolio overlaps with those affected by CBAM and its sharp production decline.