Steel Exports from India Expect Sharp Growth

India is forecast to become more of a steel exporter. The volume of steel exports from the country will increase significantly.

Continuing weakness in domestic demand has boosted India's steel exports over the past few months. Until fiscal year 20, the country exported about 5 million tons of steel per year. However, in the first four months of the current financial year, exports amounted to about 2 million tons.

Several major steel companies have announced significant capital investment plans, mainly in brownfield projects. This should lead to an increase in the capacity of steel mills in a short time, as opposed to greenfield projects. According to Dixit of Edelweiss Securities, the acquisition of state-owned steel mills by large private players will boost steel production in the country, which in turn will help maintain strong exports even as domestic demand rises.

Commenting on the Chinese steel market, he noted that the country's production cuts in line with its decarbonization targets are likely to intensify further during the winter season. The decline in production will have some impact on world steel prices. It should be noted that steel consumption in China has dropped significantly over the past couple of months, dropping to 10%.