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Positive Outlook for Asia’s Steel Market Amidst Increased Plant Activity

Recent observations reveal a positive shift in Asia’s steel market, evidenced by increased activity levels across key plants. The article US mechanical tubing exports down 4.1 percent in August 2025 from July highlights a broader context where challenges in US exports could influence regional supply chains. However, this sentiment contrasts with activity data reflecting stability and slight growth in several Asian steel facilities.

The satellite data show the following monthly activity trends for selected steel plants:

Bar chart and satellite map of steel production activity in Asia

Activity at the Jianlong Beiman Special Steel Co., Ltd. (China) has notably peaked at 58.0% in October, showcasing its resilience despite larger market fluctuations. Its production primarily involves tool steel and stainless heat-resistant steel. The recent decrease in overall activity can be associated with expected wider market shifts due to diminishing exports elsewhere, such as the mentioned US mechanical tubing decline.

Meanwhile, the Nippon Kyushu Works maintained stable activity at about 40% throughout October, indicative of its capacity to withstand export challenges while focusing on semi-finished products. Recent reports do not explicitly connect this stability to changes in export dynamics, signaling potential insulation from broader market pressures.

At the Daido Steel Chita plant, activity decreased to 21.0%, marking the lowest level in this period. This drop might be partially linked to global supply issues, but specific ties to the latest news articles were not established. As this plant focuses primarily on automotive and construction sectors, procurement professionals should consider the potential for supply disruptions in these end-user markets.

In summary, while the overall market sentiment remains positive, steel buyers should proceed with caution, particularly concerning sourcing from the Daido Steel Chita plant where activity has dropped substantially. It is prudent to maintain diversified procurement strategies to mitigate risks stemming from production fluctuations and export uncertainties. Given the recent observations, establishing strong communication with suppliers, notably from both the Jianlong Beiman and Nippon Kyushu facilities, can provide substantial leverage in ensuring supply stability amidst shifting market dynamics.