India’s steel industry has had a big mix of challenges and opportunities as we are heading into national elections
Rise On Steel Export It’s Good Or Bad News?
Steel Exports in India are on the rise but this news doesn’t look as good as it sounds. Demand in India Has been on a significant decline because of elections coming ahead. During elections government can’t announce big infrastructural projects as it can sway away votes so they spend less money on infrastructure. This slow demand for steel and a peak in steel Exports
This can look good for the companies in the short run but it will mean they aren’t able to sell as much steel as they used to in India and can hurt the company in the long run
Numbers are speaking up, steel Exports alone shot up by 21% in February reaching a million tonnes of steel in export, India exports more steel than it imports
Experts Opinions
Experts have different opinions on the matter some say this is only temporary and the rise of domestic demand will rise once again after elections. They see it as a temporary slowdown and are optimistic about the situation.
Some believe the growth will not last long as China is running its horses fast to be the top exporter of steel which can be quite competitive for Indian Exporters
Conclusion
Nothing can be said with certainty at this point about what will happen next. The election period has stretched to June and we’ll have to wait and watch and keep our eyes open for any unhappiness or potential opportunities to not miss any. In the meantime, steel companies are keeping a close eye on both domestic and international markets to make the best decisions for their business.
