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Try the Free AI Search EngineAsia’s Steel Market Sentiment Soars Amid China’s Renewable Energy Mandate
Asia’s steel industry is witnessing a very positive market sentiment, primarily driven by China’s ambitious renewable energy targets for industrial sectors. As cited in “China expands green energy targets in industrial sectors“, and “China mandates renewable power use for industry“, these policies are fostering an environment that encourages sustainable practices, thus influencing operational shifts in various steel plants.
Recent satellite data illustrates a notable drop in activity at the Ramsarup Lohh Udyog West Bengal plant, which fell from 9% in March to 1% in May and further to 1% by July. The significant decrease does not appear to connect directly with any recent legislative changes outlined in the news articles.
In contrast, both JFE West Japan Works plants have seen a relative stability in their activity levels, fluctuating between 42% to 56% for the Fukuyama plant and 39% to 44% for Kurashiki, though the former dropped to 45% by July. These figures suggest a more resilient operational capacity. It is noteworthy that these plants may be less affected by the immediate impact of renewable energy mandates than their Indian counterparts.
The Ramsarup Lohh Udyog’s drop to 1% by July indicates potential supply disruptions for local markets, as this plant primarily produces finished and semi-finished steel products essential for the energy sector. Buyers may need to diversify their supply sources to mitigate risks associated with reliance on a small number of producers.
In contrast, both JFE plants’ sustained activity levels underscore a robust operational framework, capable of adapting to the evolving legislative landscape. Buyers should consider prioritizing procurement from these facilities, especially as the JFE West Japan Works (Kurashiki) and (Fukuyama) plants remain aligned with the green energy trends while maintaining their production outputs.
Steel procurement professionals are urged to monitor further developments in regulatory frameworks and plant operational statuses closely, particularly in light of rising green energy requirements, which may define supply capabilities moving forward.