Asia’s steel market is off to a volatile start in 2025, grappling with a combination of trade disputes, falling margins, and policy uncertainty. The region’s benchmark product, hot-rolled coil (HRC), has seen prices fall significantly, with SS400-grade HRC FOB China ending 2024 down by 17%.
The drop is attributed to a surge in antidumping investigations and protectionist measures targeting Chinese exports. Some buyers are also hesitant to place orders amid speculation of further policy shifts in key markets like India and Vietnam.
In China, production margins for many mills briefly improved in late 2024 following a stimulus boost from the government. However, by year’s end, margins had dipped back into negative territory due to weak domestic demand and global price undercutting.
“Producers are in survival mode,” said Satomi Yamada, a Tokyo-based steel strategist. “Many are prioritizing volume over profit, just to keep their furnaces running.”
Observers expect continued uncertainty throughout Q2, especially if global economic conditions remain sluggish and trade frictions persist.
VietnamSteel by Hoa Sen Group
