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Asia Steel Market Poised for Growth: US-China Trade Optimism Boosts Production

Asia’s steel market shows strong production trends amidst positive US-China trade developments. The observed increases in steel plant activity coincide with reports of easing trade tensions, although a direct causal relationship cannot be definitively established. Specifically, articles titled “Trumps US-Zölle im Liveticker: Trump kündigt Handelstreffen mit China für Montag an | FAZ,” “Trumps US-Zölle im Liveticker: USA wollen Handschlag-Abkommen mit China zur Lieferung Seltener Erden | FAZ,” and “Trumps US-Zölle im Liveticker: Trump: Einigung mit China auf Abbau von Exportbeschränkungen | FAZ” suggest a favorable environment for steel production, even though no explicit relationship can be established between these events and the steel production. These articles also report a willingness to extend the deadline for trade talks, detailed in the article “Trumps US-Zölle im Liveticker: Trump zu Fristverlängerung für Handelsgespräche bis 8. Juli bereit“.

Overall, the average steel plant activity in Asia fluctuated, with a peak in January 2025 (45%) and a significant drop in June 2025 to 28%. Guangdong Jinshenglan Metallurgical Technology Co., Ltd. consistently operated at very high activity levels, reaching 100% in June 2025, significantly exceeding the Asian mean. Baosteel Desheng Stainless Steel Co., Ltd. showed moderate activity, peaking at 61% in March 2025 and declining to 52% by June 2025. Baotou Da’an Iron and Steel Co., Ltd. demonstrated relatively stable activity around the 50-60% range throughout the observed period.

Guangdong Jinshenglan Metallurgical Technology Co., Ltd., an EAF-based special steel producer with a 1.2 million tonne capacity, has consistently operated at extremely high capacity, reaching 100% in June 2025. This suggests strong demand for its “excellent special steel” products. No connection to the provided news articles can be established.

Baosteel Desheng Stainless Steel Co., Ltd., an integrated BF/BOF stainless steel producer with a 3.41 million tonne crude steel capacity, experienced moderate activity fluctuations, peaking at 61% in March 2025 and declining to 52% by June 2025. The company holds Responsible Steel Certification and ISO50001, suggesting commitment to sustainability, however, this does not appear to directly translate into increased activity as of June 2025. No connection to the provided news articles can be established.

Baotou Da’an Iron and Steel Co., Ltd., an integrated BF/BOF producer of construction steel with a 1.1 million tonne crude steel capacity, maintained a relatively stable activity level around 50-60% throughout the period. The consistent activity suggests steady demand for construction steel. No connection to the provided news articles can be established.

The sustained high activity at Guangdong Jinshenglan Metallurgical Technology Co., Ltd., producing special steels, indicates strong demand in this niche. Given the overall positive sentiment driven by potential US-China trade agreements, as highlighted in the provided news articles, steel buyers should:

• Prioritize securing contracts with Guangdong Jinshenglan Metallurgical Technology Co., Ltd. to ensure a reliable supply of specialized steel. This recommendation is supported by their consistently high observed activity levels indicating their ability to meet demand and the general positive market sentiment in the news.
• Carefully monitor Baosteel Desheng Stainless Steel Co., Ltd.’s production levels and diversify procurement strategies. The lack of clear connection to the news and the moderate production levels mean that buyers should remain careful when considering contracts with this company.