India Investment Program Expected to Generate Significant Steel Demand
06/16/2016 - Indian miners and steelmakers are likely to see significant new demand arising from Prime Minister Narendra Modi’s US$87 billion Make in India initiative, reports The (India) Economic Times.
Citing a report by S&P Global Platts, The Economic Times said the initiative, which is intended to drive new infrastructure and manufacturing projects, has enormous upside potential as nearly 60 percent of the investments will be in road, power and rail projects.
But, it said, it may take some time for the investments to develop.
“India has routinely missed its targets and despite the efforts of the Modi government, limited access to land, approval delays and a lack of funding all remain," Platts wrote in the report, according to the newspaper.
It also remains to be seen how much of that new demand will wind up being met by imports. As in other markets, Indian steelmakers have been challenged by a surge in low-cost, foreign-made steel.
The rising tide led the country to impose a minimum price on imported steel in February. The safeguard measure is supposed to expire in August, but there are some calls to extend it, even at the risk of running afoul of World Trade Organization.
The price floor helped reduce import volumes to a 14-month low in May, according to the Reuters news service.
But, it said, it may take some time for the investments to develop.
“India has routinely missed its targets and despite the efforts of the Modi government, limited access to land, approval delays and a lack of funding all remain," Platts wrote in the report, according to the newspaper.
It also remains to be seen how much of that new demand will wind up being met by imports. As in other markets, Indian steelmakers have been challenged by a surge in low-cost, foreign-made steel.
The rising tide led the country to impose a minimum price on imported steel in February. The safeguard measure is supposed to expire in August, but there are some calls to extend it, even at the risk of running afoul of World Trade Organization.
The price floor helped reduce import volumes to a 14-month low in May, according to the Reuters news service.
