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Try the Free AI Search EngineAsia Steel Market Reacts to US Chip Tariffs & Government Investments: Plant Activity Analysis
Asia’s steel market shows mixed activity amid US government intervention in the semiconductor industry. Activity changes at key steel plants do not show a direct relation to the news, but the impact of US tariffs on chip imports, as mentioned in “US takes 10pc stake in Intel,” and the increasing government intervention described in “Donald Trump und Intel: US-Regierung geht staatskapitalistische Wege,” are expected to affect broader industrial production and steel demand in the region. No direct connection could be established between changes in activity and news on Nvidia “Nvidia mit Rekordquartal – China-Geschäft bremst Wachstum” and US stock markets “Schlussglocke: Nasdaq, Dow und S&P 500 schaffen es ins Plus – Boeing, IBM und Nvidia ziehen an“.
The mean steel plant activity in Asia peaked in May at 43.0% and decreased to 32.0% in August. Ansteel Group Chaoyang Steel & Iron Co., Ltd. shows a stable activity level over the past six months, consistently operating well above the mean, reaching 75.0% in August. Sansteel Minguang Co., Ltd. Fujian also exhibits stable activity, fluctuating slightly between 39.0% and 44.0%. Rustavi Metallurgical Plant experienced more volatility, with a low of 38.0% in June and a high of 58.0% in March.
Ansteel Group Chaoyang Steel & Iron Co., Ltd., located in Liaoning, China, primarily uses integrated BF and BOF processes, with a crude steel capacity of 2.1 million tonnes. Activity has been consistently high and increasing, reaching 75.0% in August, significantly above the Asian average. This could indicate strong domestic demand or export activity but no link could be established with the provided news articles.
Sansteel Minguang Co., Ltd. Fujian, another integrated BF/BOF plant with a larger 6.8 million tonne crude steel capacity, produces finished rolled products including steel plates and construction steel. Its activity has been relatively stable, around 40%, with a slight increase to 44.0% in July and August. It is primarily focused on supplying building and infrastructure projects. The stable activity does not directly correlate with the cited news articles.
Rustavi Metallurgical Plant in Georgia, a smaller plant with a 0.12 million tonne EAF-based crude steel capacity, shows more volatile activity. The plant uses both BF and EAF processes and produces a variety of products including rebar and seamless pipes. Its activity dropped to 38.0% in June but rebounded to 50.0% in August. No direct connection could be established with the cited news articles.
Given the US government’s increasing intervention in the semiconductor industry, as reported in “US takes 10pc stake in Intel” and “Donald Trump und Intel: US-Regierung geht staatskapitalistische Wege,” steel buyers should anticipate potential shifts in demand from downstream industries, especially those reliant on semiconductors.
Recommended Procurement Actions:
- Monitor Chinese Steel Export Policies: Steel buyers sourcing from China should monitor any potential changes in export policies, as the US government’s actions could prompt retaliatory measures that affect steel trade.
- Diversify Sourcing: Given the geopolitical uncertainties, procurement professionals should diversify their sourcing to mitigate potential supply disruptions. Prioritize suppliers located in regions with stable trade relations.
- Focus on Plants with Stable Activity: Procurement strategies should prefer steel plants demonstrating stable output, such as Ansteel Group Chaoyang Steel & Iron Co., Ltd, or those with increasing activity.