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Try the Free AI Search EngineChina Steel Market Report: Stable Plant Activity Amid Neglected Diplomatic Issues
Economic activity within China’s steel industry has exhibited stability, as underscored by Chancellor Merz’s recent visit, covered in Kanzler Merz in China War das ein Neuanfang? While government relations seem to prioritize diplomatic engagement, there is little evidence of direct improvements tied to operational efficiency or demand within the steel sector.
Recent satellite data reports show that mean steelplant activity in China remained in a neutral state, with fluctuations recorded around 38% in February 2026, down from 49% in December 2025. Notably, Wugang Zhongjia Iron & Steel Co., Ltd. experienced a decline from 79% in December to 62% in February, with no clear linkage to the ongoing diplomatic dialogues emphasized in Deutschland-Blog: Merz will Beziehungen zu China ausbauen | FAZ.
Wugang Zhongjia Iron & Steel Co., Ltd., located in Henan, focuses on ironmaking via a blast furnace. The recent decline in activity (from 79% to 62% between December 2025 and February 2026) indicates operational challenges which may not directly correlate with the bilateral discussions as reported in Wirtschaftskanzler Merz in China.
SGIS Songshan Co., Ltd., based in Guangdong, operates an integrated production process and reported a decrease from 22% in October 2025 to 10% in February 2026. This notable activity drop appears disconnected from recent political engagements focusing on international relationships, particularly as there is no mention of conditions affecting local production cited in Klaus Mühlhahn über Friedrich Merz, Xi und China.
Conversely, Xining Special Steel Co., Ltd. in Qinghai sees a more stable production level, maintaining 81% in February. This contrasts sharply with the declines in other plants, suggesting strengths in specific product lines. However, no explicit connections to news developments have been established.
Recommended procurement actions should focus on:
– Closely monitoring Wugang Zhongjia’s operational outputs due to fluctuating levels which could indicate potential supply disruptions.
– Engaging with Xining Special Steel for potential deliveries, as its consistent operational activity positions it favorably for immediate supply needs.
The observed steady activity combined with fluctuating governmental strategies suggests a mildly cautious approach for steel procurement professionals, advocating for flexibility in sourcing to mitigate all possible supply chain risks.