![]() ![]() The middle-east region, which is increasingly adding new capacity, still has a lot of catching up to do before it will start exporting to other regions. Even though India may not be able to replace China as the top producer and consumer of steel, its vast domestic market will provide ample scope of growth for the domestic steel makers.īasson is of the opinion that apart from the strong support from domestic demand, the Middle East and Southeast Asia would be key targets for India’s steelmakers for exports in the next 5-7 years. This is where the Indian steel makers stand to gain. This would result in a renewed focus on its domestic market and push back the exports. The fact that the exports from China have fallen considerably from the peaks of 2016, the likely closure of 150 million tonne (MT) of production capacity there will keep the exports from China in a tight range. India stands to gain from the current dynamicsīasson believes that India’s steel industry is better placed than its peers in other countries and should witness strengthening of fundamentals, driven by better domestic demand, increased export opportunities, limited imports, and firming up of steel prices at healthy levels. “Although any sharp production growth is unlikely in CY23, it should be in the range of 1.5-2.0 percent with another healthy year for India and likely turnaround in Europe and North America,” said Edwin Basson, Director-General of the World Steel Association (WSA) at an event hosted by Elara Capital. On the other hand, India and the Middle East witnessed a year-on-year growth of 5 percent and 7 percent, respectively. It faced a 4 percent on-year contraction in global steel production, driven by a 2 percent fall in production in China and 7 percent in the rest of the world.ĭata shows that apart from China, production in other key regions, such as Europe, too declined 10 percent on-year and the US witnessed a decline of 5 percent. Some sectors have been hit harder in the wake of impending demand slowdown. With the central banks giving top priority to control inflation even at the cost of economic growth, the global economy paints a gloomy picture for the near future. The year 2022 has been a period of major ups and downs - not only for the global equity markets but also for the global economy.
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