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Try the Free AI Search EngineAsia Steel Market Report: Deteriorating Activity Amidst Trade Disputes
Recent developments in Asia point to a negative trend in the steel market, primarily influenced by geopolitical tensions. Notably, China and the EU agree on steps to resolve their dispute over EV imports and related articles indicated numerous trade implications that could indirectly affect steel demand and production levels in the region. Concurrently, recent satellite data has revealed significant fluctuations in steel plant activities without direct correlation to these events, indicating underlying issues in production dynamics.
At Tata Steel Kalinganagar, activity remained relatively high, peaking at 59.0% in January 2026, yet overall market sentiment is worsening, indicated by a decline in the average activity to 31% by the start of 2026. This drop could reflect concerns related to potential export inefficiencies highlighted in the EU-China EV import discussions, although no direct correlation was observed.
JSW Steel Dolvi showed variability, with activity levels fluctuating but peaking at 64.0% towards the month’s end in January. While this plant experienced activity drops, the broader market implications are lagging, closely tied to heightened competition pressures in the automotive sector influenced by EU negotiations.
The SeAH Besteel Gunsan plant maintained lower consistent activity levels throughout the observed period, with production hovering around 54.0%. Again, there was no clear linkage to recent EU-China trade developments, but the ongoing European market shake-up could signal caution for future orders.
Procurement professionals must remain vigilant in this precarious environment. Activity decreases at JSW Steel Salem and increasing competition from both local and international operations suggest potential supply disruptions. Buy-side professionals should consider renegotiating supply contracts, potentially seeking alternatives to mitigate risks associated with declining output at these critical facilities, particularly Tata Steel and JSW Steel. Given the current market outlook’s negativity, observing further developments related to EU and China trade relations will be crucial to gauging future steel demand.