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Try the Free AI Search EngineAsia Steel Market Tumbles: Plant Activity Drops Amidst Oversupply and Trade Tensions
Asia’s steel market faces significant headwinds, evidenced by declining plant activity and pricing pressures. The “IREPAS Short Range Outlook: June 2025“ highlights a global long steel oversupply situation impacting Asian mills. Satellite data supports this, showing decreased activity across key plants. However, no direct link can be established between this overall market sentiment and the news articles “Sluggish demand drags on European HRC prices; buyers keep to sidelines” or “Assofermet: Italian steel market remains uncertain in May amid growing concerns“.
The average steel plant activity in Asia experienced a notable drop in June 2025, falling to 30%, significantly below the levels observed in the preceding months (between 39% and 45%). This suggests a weakening in overall production across the region. Shandong Taishan Steel Group Co., Ltd. has consistently operated below the Asian average, with activity fluctuating between 13% and 20%. Activity at Atibir Industries steel plant in India has been consistently high, ranging from 67% to 76%, showing an upward trend over the observed period and significantly exceeding the Asian average. Laiwu Iron and Steel Group Yinshan Section Steel Co., Ltd. has shown stable activity, ranging from 76% to 79%, consistently above the Asian average until June 2025.
Shandong Taishan Steel Group Co., Ltd., a major integrated steel producer in Shandong, China, with a crude steel capacity of 5000 tonnes, focuses on finished rolled products, including hot rolled coil and stainless steel. Its activity remained consistently low and fell to 13% between March and April of 2025, before a marginal rise to 16% in June. This persistently low activity, below the Asian average, might be associated with the oversupply conditions and pricing pressures detailed in the “IREPAS Short Range Outlook: June 2025” which states that “Chinese exports are surging, displacing Southeast Asian mills due to lower costs and subsidies”.
Atibir Industries steel plant in Jharkhand, India, an integrated BF-BOF plant with a crude steel capacity of 600 tonnes, produces crude, semi-finished, and finished rolled products. Activity has been consistently high, reaching 76% in June 2025. No direct link to news articles could be established.
Laiwu Iron and Steel Group Yinshan Section Steel Co., Ltd., another integrated steel producer in Shandong, China, boasts a larger crude steel capacity of 5400 tonnes, specializing in section steel and strip steel. While activity decreased slightly to 76% in June 2025, it was consistently high until that month. No direct link to news articles could be established.
Evaluated Market Implications:
The “IREPAS Short Range Outlook: June 2025” points to predatory competition due to oversupply, driven in part by increased Chinese exports. The satellite-observed activity reduction at Shandong Taishan Steel Group Co., Ltd., combined with the news highlighting Chinese export surges, may indicate a strategic shift towards exports over domestic production for certain Chinese mills. For steel buyers, this suggests a potential opportunity to source HRC from Chinese suppliers at competitive prices, but also a risk of potential supply chain disruptions if Chinese producers prioritize exports over fulfilling existing contracts. Buyers should also consider diversifying sources outside of China given the unstable market conditions described in the “IREPAS Short Range Outlook: June 2025”. Given the high activity at Atibir Industries, procurement specialists should monitor this plant closely and compare prices with Chinese imports, which are described in the “IREPAS Short Range Outlook: June 2025” as displacing Southeast Asian mills.