DRAGON FIRE
Business Standard|October 21, 2024
Indian steel is feeling the heat from China. How can India avoid becominga dumping ground?
ISHITA AYAN DUTT
DRAGON FIRE

India's finished steel imports surged 41.3 per cent to 4.7 million tonnes (mt) I 41.3 per cent to 4.7 million tonnes compared to the same period last year.

Country-wise data for the first five months show China continues to lead the pack with the largest share in total finished steel imports with 30.5 per cent.

As Dragon Land grapples with economic challenges, it is becoming an increasing concern for the steel industry, impacting not only India but the entire world. Beijing's latest measures to boost the economy and the beleaguered property sector are unlikely to fix the problem.

Importance of being China

The Olympics were awarded to Beijing in 2001, and until 2008, when it actually happened, the production of the alloy grew rapidly.

The main venue, the Beijing National Stadium, or the Bird's Nest, was said to have consumed 110,000 tonnes of steelthe largest steel structure ever built at that time.

But consider the overall numbers. In 2001, China's steel production stood at 148.9 mt, which increased to 500.5 mt in 2008. As of 2023, it was at 1,019.1 mt, according to World Steel Association (WSA) figures-accounting for 53.97 per cent of world steel production. India, second in the league table, was at 140.2 mt.

The property sector in China accounted for about a third of domestic steel consumption at peak level. But a downturn since 2021, coupled with overall weak demand, is snowballing into a global problem.

Reports indicate China is on track to export more than 100 mt in 2024-the most since 2016.

India's concern

The deluge of exports from China is hitting Indian steelmakers in more ways than one. Cheaper products from the country flooding the world have impacted India's competitiveness in export markets.

This story is from the October 21, 2024 edition of Business Standard.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the October 21, 2024 edition of Business Standard.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM BUSINESS STANDARDView All
Pioneer of parallel cinema dies at 90
Business Standard

Pioneer of parallel cinema dies at 90

Veteran filmmaker Shyam Benegal, who heralded the Indian parallel cinema movement in the 1970s and 1980s with films such as Ankur, Nishant and Manthan, died on Monday, his daughter Pia said. He was 90.

time-read
2 mins  |
December 24, 2024
How tech is changing the landscape of elder care
Business Standard

How tech is changing the landscape of elder care

The concluding part of the silver economy series looks at innovative apps and wearables that are empowering seniors and their families

time-read
2 mins  |
December 24, 2024
ALGO RHYTHM AND BLUES
Business Standard

ALGO RHYTHM AND BLUES

Can Sebi's draft rules on algorithm-based trading level the playing field between institutional and non-institutional investors?

time-read
4 mins  |
December 24, 2024
Business Standard

AVOIDING MIS-SELLING BY MF DISTRIBUTORS Say no to NFOs, buy direct plans and seek advice from Sebi RIAs

The Securities and Exchange Board of India (Sebi) has implemented a new rule to curb unnecessary portfolio churn by distributors, usually done during the launch of new fund offers (NFOs) to pocket higher commissions.

time-read
2 mins  |
December 24, 2024
Amber Enterprises posts sharpest rise in 2 mths
Business Standard

Amber Enterprises posts sharpest rise in 2 mths

13% gains driven by block deal in which 1% equity changed hands

time-read
2 mins  |
December 24, 2024
Business Standard

NEW LISTINGS ADD 3% TO INDIA'S MCAP IN 2024

New listings through initial public offerings (IPOs) in 2024 contributed nearly 3 per cent (₹14 trillion) to India's market capitalisation, surpassing last year's contribution of 1.4 per cent (₹5 trillion).

time-read
1 min  |
December 24, 2024
Business Standard

Weak management commentary weighs on Siemens stock

Siemens's share price has lost ground in the past few sessions following weak management commentary.

time-read
2 mins  |
December 24, 2024
Business Standard

Mkts stage sharp recovery after five days of fall

Equity benchmark indices Sensex and Nifty rebounded sharply on Monday after five days of steep decline amid value buying at lower levels and a rally in global markets.

time-read
1 min  |
December 24, 2024
Business Standard

Public offers see investor rush

The five initial public offerings (IPOs) that closed on Monday attracted cumulative bids worth ₹1.4 trillion against ₹2,909 crore they were looking to raise. These offerings were subscribed between 11 and 195 times.

time-read
1 min  |
December 24, 2024
Zomato pips Maruti, HUL in Sensex weight
Business Standard

Zomato pips Maruti, HUL in Sensex weight

Becomes first new-age firm to join 30-share benchmark

time-read
1 min  |
December 24, 2024