India’s Steel Prices Climb as Global Markets Stay Weak
Domestic demand and higher production costs have supported Indian steel prices, while global oversupply and weak consumption weigh on overseas markets.
Key takeaways
- Indian steel prices rose sharply this year as overseas markets remained subdued.
- The column links global price weakness to oversupply, led by China.
- The author says cheaper imports are a key risk for India’s steel market.
Indian steel prices have risen sharply this year while overseas markets remain subdued, according to a column by Hareesh V, head of commodity research at Geojit Investments. He attributes the contrast to strong domestic demand in India and excess supply globally.
Infrastructure projects, manufacturing, construction and demand from sectors such as autos and housing have supported Indian steel consumption, the column says. Higher costs for coking coal, iron ore, power and transport have also supported prices.
Overseas markets face a different balance. The column says China’s prolonged property slowdown has weakened steel demand, while production has not fallen at the same pace. Exports of competitively priced Chinese steel have added to supply across several regions.
India also faces imports, including lower-priced steel from China, South Korea and Japan. The author says domestic consumption has largely absorbed these volumes, but a widening price gap between India and overseas markets could bring a surge in cheaper imports.
Hareesh expects infrastructure, housing and manufacturing investment to support Indian demand, while capacity expansions could add supply. He says a stronger global price recovery would likely require either renewed Chinese demand or major production cuts.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
