Consultant: India Holds Much Long-Term Steel Promise
10/18/2016 - Despite the global steel industry’s current woes, India presents steelmakers with a tremendous long-term opportunity as consumption there is expected to double over the next decade, according Atanu Mukherjee, president of Datsur Business & Technology Consulting.
Speaking during the 20th annual Smithers Apex Met Coke World Summit in Pittsburgh, Pa., which opened Tuesday, Mukherjee said that although the Indian industry is struggling with profitability, debt and cash flow at present those problems should abate as consumption rises. Consumption, he said, will increase on strong economic growth, industrialization, infrastructure investment and urbanization within the country.
Additionally, he said that Indian steelmakers have cost advantages over their counterparts on raw materials and labor. Those advantages will only increase on improvements in logistics, productivity and energy usage.
PNC economist Mekael Teshome, who also spoke during the conference’s opening sessions, said their forecasts also point to growth in India over the long-term.
In the near-term, he said that on the whole, global economic growth is expected to be steady though 2017, as some economies pick up and others cool off. The overall growth should support better demand for steel and coke products, with India driving demand for coke, he said.
He also said he expects coke prices to rise in the coming year on account of tightening market.
Additionally, he said that Indian steelmakers have cost advantages over their counterparts on raw materials and labor. Those advantages will only increase on improvements in logistics, productivity and energy usage.
PNC economist Mekael Teshome, who also spoke during the conference’s opening sessions, said their forecasts also point to growth in India over the long-term.
In the near-term, he said that on the whole, global economic growth is expected to be steady though 2017, as some economies pick up and others cool off. The overall growth should support better demand for steel and coke products, with India driving demand for coke, he said.
He also said he expects coke prices to rise in the coming year on account of tightening market.
