After a period of negative news following the COVID-19 virus pandemic, some Indian steel industries have finally embarked on a new production path and set financial incentives for buyers of their products. This was initially done with the focus on the domestic market, which after initial tests and feasibility studies of real profit margins for international markets was also proposed and drew a huge flood of global steel buyers to India.
*** Transformation of supply and demand in Indian steel
Domestic demand for steel has returned to pre-Corona levels, which could be a green light for other economic indicators. Demand for the automotive and consumer goods sectors has boosted demand for steel. This will greatly contribute to the prosperity of the Indian steel market and prepare the ground for positive economic growth in steel.
*** Domestic demand for Indian steel improves
According to a report by Mutual Oswal Financial Company, rising steel prices and falling coke coal prices guarantee the profit margins of steelmakers in India’s initial supply chain. In addition, the report noted that there are signs of improving domestic demand for steel in the country. This will be reinforced by financial incentives in the near future.
*** Assessment of Indian crude steel consumption
The memo also notes that India’s consumption of crude steel is also gradually improving. Let what happened in 2014 for the Indian steel industry be repeated and this industry be accompanied by a recession despite the good start in profitability due to the lack of raw materials.
India’s crude steel consumption fell 85 percent in April 2020 from a year earlier, which is expected to create a better outlook as demand grows and financial incentives grow.
*** Anti-steel dumping laws in India
India on Tuesday to import certain types of steel products from China, Vietnam and Korea to avoid losses to domestic producers due to cheap imports from other countries that have cheap labor and unequal competitive advantages over the Indian manufacturer, anti-tariffs Dumped. This could also contribute to the positive outlook for the Indian steel market within the country, effectively reducing India’s trade surplus and international debt, and contributing to India’s industrial economic indicators.
*** The reason for the Indian anti-dumping law
The law (enacting anti-dumping laws) came after the Commerce Department of the Indian Ministry of Commerce concluded in its investigation that these imports of steel products by some countries are priced lower than their natural value compared to laughter products. The trend can have a very bad effect on Indian producers. Therefore, this issue leads to dumping and in turn affects domestic actors.
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