Financial Express reported that Steel Authority of India Limited’s Chairperson Ms Soma Mondal, during an industry event, said that steel trade in the global market will see a significant change with China cutting down production and the Chinese government withdrawing various support it provided to its steel industry and Indian steel producers are expected to benefit from the opportunity, especially in the markets where there are direct competition with the Chinese suppliers like Southeast Asia and the Middle East.”Ms Mondal said “The Chinese government, which has been providing support to its steel industry in terms of various policies, recently has been withdrawing the same so as to ease the environmental concerns. The decision to cut down production has a tremendous impact on the input materials such as iron ore and coking coal. The demand for these are expected to come down and the prices will follow the path also.”Ms Mondal added “Prices are expected to remain range-bound not only for the rest of the year but for the coming year too. The Indian market is strong for the government’s thrust on infrastructure building, which accounted for 68% of India’s total steel consumption. While domestic demand would remain intact, infrastructure building across geographies would aid Indian companies get higher margins. Flat product prices are in sync with the global prices. Europe prices are significantly higher and therefore the arbitrage is huge.”
Financial Express reported that Steel Authority of India Limited’s Chairperson Ms Soma Mondal, during an industry event, said that steel trade in the global market will see a significant change with China cutting down production and the Chinese government withdrawing various support it provided to its steel industry and Indian steel producers are expected to benefit from the opportunity, especially in the markets where there are direct competition with the Chinese suppliers like Southeast Asia and the Middle East.”Ms Mondal said “The Chinese government, which has been providing support to its steel industry in terms of various policies, recently has been withdrawing the same so as to ease the environmental concerns. The decision to cut down production has a tremendous impact on the input materials such as iron ore and coking coal. The demand for these are expected to come down and the prices will follow the path also.”Ms Mondal added “Prices are expected to remain range-bound not only for the rest of the year but for the coming year too. The Indian market is strong for the government’s thrust on infrastructure building, which accounted for 68% of India’s total steel consumption. While domestic demand would remain intact, infrastructure building across geographies would aid Indian companies get higher margins. Flat product prices are in sync with the global prices. Europe prices are significantly higher and therefore the arbitrage is huge.”
