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Try the Free AI Search EngineChina Steel Market: New Silicon Steel Plants Boost Outlook Despite Recent Activity Dips
China’s steel market outlook remains positive, driven by investments in high-end silicon steel production as evidenced by the news articles “ArcelorMittal/China Oriental Group JV orders high-end silicon steel processing plant from ANDRITZ” and “ANDRITZ to Supply Silicon Steel Processing Plant to ArcelorMittal/China Oriental Group“. These investments aim to cater to the rapidly growing demand for electrical steel in the energy and automotive sectors. However, recent activity data shows some fluctuations, particularly in Ningbo Iron & Steel Co., Ltd., where a notable activity decrease was observed, for which no direct connection to provided news can be established.
Recent monthly activity trends are shown in the following table:
Across China, the mean steel plant activity reached a peak of 46% in May before declining to 35% by the end of July.
Jianglong Acheng Iron & Steel Co., Ltd., an integrated steel plant in Heilongjiang with a 1.1 million tonne BOF capacity, experienced high activity levels, peaking at 99% in June. This level is significantly above the Chinese average. The plant produces hot-rolled and coated steel products for automotive, energy, and machinery sectors. There is no clear evidence in the provided news to connect the plant’s activity with the ANDRITZ projects.
Dongbei Special Steel Group Dalian Special Steel Co., Ltd., located in Liaoning, is an integrated steel plant that produces automotive steel and stainless steel bars and wires, has maintained a consistently high activity level around 84% to 85% during the observed period, considerably above the national average. The company uses BF, BOF, and EAF production methods. There is no direct link between this plant’s activity and the provided news articles.
Ningbo Iron & Steel Co., Ltd., a major integrated steel producer in Zhejiang with a 4 million tonne BOF capacity, showed a noticeable activity decline from 87% in March to 42% in July. Its product range includes carbon structural steel, low-alloy structural steel, automotive structural steel, electrical steel and weathering steel. ANDRITZ Delivers Cold Rolling Mill to Ansteel Group: The cold rolling mill, designed to produce 260,000 metric tons annually of advanced high-strength steel and titanium alloy strips, is for Ansteel Group, not Ningbo Iron & Steel Co., Ltd.. There is no direct connection between the observed activity decrease and the new silicon steel plant projects announced, indicating that factors unrelated to these projects might be influencing Ningbo’s production.
Evaluated Market Implications:
The commissioning of new silicon steel processing plants, highlighted in the news articles “ArcelorMittal/China Oriental Group JV orders high-end silicon steel processing plant from ANDRITZ” and “ANDRITZ to Supply Silicon Steel Processing Plant to ArcelorMittal/China Oriental Group“, suggests a mid-to-long term increase in demand for specific high-grade steel. The observed decrease in activity at Ningbo Iron & Steel Co., Ltd., combined with generally declining average steel plant activity in China, might cause short-term supply tightness specifically for electrical steel.
Recommended Procurement Actions:
- For steel buyers: Closely monitor silicon steel prices. Given the new plant commissioning and recent activity dip at Ningbo Iron & Steel Co., Ltd. along with the mean plant activity decline, consider securing supply contracts for electrical steel in advance to mitigate potential price increases and supply disruptions in the near term. Actively diversify your supplier base to avoid over-reliance on single producers.
- For market analysts: Track the commissioning progress of the ANDRITZ silicon steel plants closely. Further, monitor the activity levels of other major electrical steel producers like Ningbo Iron & Steel to anticipate potential supply-side changes. Investigate potential reasons behind the observed activity decrease in Ningbo Iron & Steel Co., Ltd. to gain a complete perspective.