With China’s new stimulus boost for its realty sector, the Indian steel industry is hopeful that fewer Chinese steel shipments will find their way to Indian ports. Industry analysts say that the stimulus will potentially increase China’s domestic steel demand, hence reducing the country’s need to export elsewhere and bring stability in steel prices in India.
The move is expected to reap short term benefits for the Indian steel companies as domestic HRC (hot rolled coil) prices become at par with Chinese import prices. “In the last few months dumping of steel had increased and steel realisations had been showing a down-ward trend. With this stimulus package, the construction sector will see an uptick in China thereby reducing the problem of dumping for those grades of steel and other metals associated with the building and construction industry,” Niladri B, Partner, Grant Thornton Bharat said.
