Steel exports from India to remain high in the coming months

India's steel exports will remain strong in the coming months as higher prices and regional demand force steel companies to export some of their output, according to Moody's Investors Service.

In its report "Steel - Asia-Pacific: Higher Raw Material Costs Diminish Steel Price Benefit Amid Ukraine Conflict," Moody's Investors Service notes: "We expect India's steel exports to remain strong in the coming months." . Moody's also expects domestic demand for steel to grow by about 10% through 2022 as the government continues to focus on building roads, railways, ports and airports.

“The pent-up demand for cars and household appliances also remains an important factor. However, the continued shortage of semiconductors continues to be a deterrent to vehicle sales.

Steel producers with a high degree of self-sufficiency in raw materials are better prepared to withstand the risks associated with higher raw material costs and possible interruptions in the supply of raw materials.

In particular, India's rated steelmakers, Tata Steel and JSW Steel Limited, are more protected from these risks given their backward integration into the production of basic materials for steelmaking.

Korean steelmaker POSCO Holdings Inc and Chinese steelmaker China Baowu Steel Group Corporation Ltd are also moderately self-sustaining through mining investments.