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Try the Free AI Search EngineAsia Steel Market Insights: Positive outlook with India-EU FTA Boosting Growth
The steel market in Asia is experiencing a very positive sentiment driven by significant developments, notably the “India, EU Sign Historic Free Trade Agreement: Auto To Agri Food Tariffs — Here Are Five Key Highlights” and “The EU and India have agreed on a historic trade deal.” This trade agreement, effective from January 2026, is anticipated to drastically enhance trade relations, influencing steel production and supply dynamics in India, particularly as activity levels at ArcelorMittal Nippon Steel India decrease from 46% to 40% in January. Meanwhile, Chubu Steel Plate Nagoya plant shows resilience, increasing operations from 66% to 71% in January.
Chubu Steel Plate Nagoya, pivotal in producing rolled plates, witnessed an increase from 69% to 71% activity in January. This growth may reflect heightened demand for electric furnace-produced steel in light of the new FTA that aims to bolster trade and cooperation, especially in the automotive sector. Conversely, Dongkuk Steel Incheon plant’s activity lay significantly low at 10% in January, mirroring a trend towards surplus capacity without clear connections to the recent trade agreement.
ArcelorMittal Nippon Steel India reported a decline to 40% in January 2026, following a steady decrease and possibly impacted by the changes in tariff structures outlined in “India-EU Free Trade Deal Explained: What Changes, What Gets Cheaper, And Which Sectors Get A Boost.” Notably, India’s recent commitments to improve organizational structures through a collaborative trade agreement could imply future shifts toward increased production capacity in light of a more competitive environment.
Evaluated Market Implications
Given the output fluctuations, steel buyers should prepare for potential supply disruptions as ArcelorMittal faces lowered activity alongside reduced tariffs under the FTA. It is recommended that procurement professionals take advantage of the active growth at Chubu Steel and explore partnership opportunities there while strategically managing contracts and inquiries with Indian suppliers to address possible capacity limits post-FTA implementation. Active monitoring of steel production levels and procurement strategies should be aligned with the dynamism introduced by the India-EU trade relations for optimized purchasing decisions.