From the Field to the Dashboard – Built by Experts, for Experts.
Discover What's Really Happening in the Steel Industry
Use the AI-powered search engine to analyze production activity, market trends, and news faster than ever before.
Try the Free AI Search EngineChina Steel: Output Dips Amid Export Pressures; Stainless Steel Sector Remains Resilient
China’s steel market faces downward price pressure amid declining production and rising exports, even as stainless steel production sees growth.
Recent activity changes at key steel plants, as revealed by satellite observations, occur against the backdrop of a global production decrease. As reported in “Global steel production fell by 5.9% y/y in October” and “Global steel production fell by 5.9% in October%,” China experienced a significant 12.1% year-on-year drop in October. Simultaneously, the article “Pressure on steel supplies to China remains despite falling production” notes increased exports and persistent overcapacity. Direct links between specific satellite-observed plant activities and these articles’ impacts are discussed below. While “Global stainless steel production in January-September increased by 3% y/y” highlights growth in the stainless steel sector led by China, its specific impact on the observed activity of the selected plants is currently not directly discernible.
The mean steel plant activity in China shows a sharp decrease in October to 25.0%, after hovering around the 43-44% mark from July to September. This coincides with the production declines reported in “Global steel production fell by 5.9% y/y in October“.
Shandong Taishan Steel Group Co., Ltd.: This integrated steel plant, with a crude steel capacity of 5000 TTPA, focuses on finished rolled products like hot and cold rolled coil, including stainless steel. Activity levels have remained consistently low from June to October, steadily decreasing from 17.0% to 13.0%. The persistent low activity, far below the Chinese average, does not have a direct causal relationship with the named news articles.
Baowu Group Echeng Iron and Steel Co., Ltd.: This integrated plant, boasting a 4400 TTPA crude steel capacity, primarily produces finished rolled products like spring steel and various wire rods. While its activity remained stable at 29% from June to July, it has experienced gradual increases, reaching 44% in October, diverging significantly from the overall downward trend in China and showing independent dynamics. This plant’s activity trend does not show a clear relationship with the named news articles.
Jilin Jianlong Steel Co., Ltd.: Jilin Jianlong Steel Co., Ltd., an integrated plant producing automotive and pipeline steel with a crude steel capacity of 3000 TTPA, exhibited consistently high activity, declining gradually from 74% in June to 67% in October. While decreasing, it remains significantly above the average Chinese steel plant activity. These activity levels do not show a clear relationship with the named news articles.
Given the backdrop of falling production reported in “Global steel production fell by 5.9% y/y in October” and the continued export pressures as highlighted in “Pressure on steel supplies to China remains despite falling production,” coupled with the declining average activity, steel buyers should prioritize securing supply contracts, particularly for products not manufactured by Baowu Group Echeng Iron and Steel Co., Ltd. Further price drops are unlikely to offset the increased risks of delayed deliveries or supply shortages. Given the resilience of stainless steel production reported in “Global stainless steel production in January-September increased by 3% y/y“, buyers should expect less impact on stainless steel procurements compared to carbon steel.