Indian steel producers will now face less competition from low standard Chinese products. Chinese experts, have asked for 100 million tons of sub-standard steel capacity to be cut. Earlier, the country had decided on a 50 million tons capacity cut.
| Indian steel producers will now face less competition from low standard Chinese products. Chinese experts, have asked for 100 million tons of sub-standard steel capacity to be cut. Earlier, the country had decided on a 50 million tons capacity cut.
Of the entire sub-standard capacity, China produces only 30 million tonne. The news will also boost prices for Indian steel as the competition in export markets too will reduce. Chintan Mehta of Sunidhi Securities said that the output cut does not make much difference in terms of demand and supply. Theoretically, it is unlikely to impact the price, but sentimentally it will react positively. Source – Moneycontrol |
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