Steel India will explode in 2023. Meanwhile we cut production
The latest steel news reports that Indian steel production is expected to increase throughout 2023. The information comes directly from industry experts and steel company executives themselves, so it should be credible.
According to research agency ICRA , steel demand in India is expected to post double-digit growth of around 11.3% in fiscal year 2023. This comes after a growth rate of 11.5% recorded in fiscal year 2022. According to the research note, the growth of steel consumption in India remained strong throughout the fiscal year 2023. This is mainly due to the support of the Indian government which has pushed economic growth towards infrastructure.
In addition, government investment spending is projected to increase by 37% year-on-year (YoY) in fiscal year 2024. For this reason, ICRA has revised its steel consumption growth estimates to 7-8% from 6-7%. India explodes in terms of production and investments.
Many industry insiders believe that steel consumption in India will only increase due to the growth of infrastructure. In an interview with CNBCTV18, Koushik Chatterjee, CFO of Tata Steel, said that like the international markets, Indian steel also faced many challenges last year. Furthermore, the CFO has predicted that consumption will only increase from now on.
Chatterjee also said we should see more balance in the market and less downward pressure on prices. Experts also believe that the volatility seen after Russia's invasion of Ukraine a year ago has eased. After all, after the covid and the energy shock, world production has stabilized, above all due to the decline in European production, as can be seen from the following graph:
The Government of India's GDP (Production Linked Incentive) program has also boosted the steel sector. According to data from the Ministry of Steel, there are currently 57 Memoranda of Understanding (MoU) with 27 companies for the production of special steels. Under this program, the Government of India has approved millions of dollars to help the steel industry. According to the latest steel news, the PLI scheme is expected to generate an additional 25 million tonnes of special steel capacity over the next five years.
Meanwhile, new data indicates that Russia is now the second largest exporter of semi-finished steel to India, all stuff that used to come to the EU. According to current estimates, the total value is $52 million for April-February 2023. This is a steep increase from a year ago, when the figure was zero.
According to this report by The Hindu Businessline, Russia has supplanted Japan as the second largest supplier of hot rolled coils and strips (HRC) to the subcontinent . In the 11 months of fiscal year 23, 0,23 MTS of hot rolled products and strip were imported from Russia. The report points out that Russian steel shipments to India, across all categories, increased by more than 500% over the same period. With 0.31 MT, Russia is the fourth largest importing country after Korea (2.03 MT), China (1.33 MT) and Japan (0.8 MT). Meanwhile, shipments from Vietnam also increased by 300%, reaching 0.29 MT. Thanks to the increase in exports from Russia and Vietnam, these two countries have managed to replace Indonesia and Taiwan as sources of steel products for India.
Thus India, thanks to its boosted industrial policy and balanced international policy, manages to see an explosion in its steel production. Instead the EU, with its mix of sanctions on Russia and austerity, sees a drop in its production and a closure of plants. Who knows who is right….
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The article India's steel will explode in 2023. Meanwhile we cut production comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/lindia-dellacciaio-esplodera-nel-2023-intanto-noi-tagliamo-la-produzione/ on Tue, 04 Apr 2023 14:38:01 +0000.