After a massive rally in metal prices across the globe, in recent times we see behemoth China showing its back to more of steel production. Tata Steel MD & CEO, TV Narendran is of the opinion that If China cuts production, then its exports will be less and this will give stability to steel prices, and as a matter-of-fact China’s potential to disrupt global steel flows will be less.
He highlights that China’s share of global steel demand is dropping since the past few years and globally, most of the demand is coming from developed countries. He says India is a good and big exporter of steel, wherein India and Russia are the lowest cost producers of Steel in the world.
TV Narendran adds that steel exporting countries are reducing their exports and India has an opportunity to fill the gap. He is positive about the future of the steel industry in India
In recent times he says that industry is witnessing a better balance where sentiments for steel are driven more by regional matters. Any infrastructure spend is steel-intensive and is good for steel demand he adds. When we see steel prices in a global context then Growth has a big impact on overall demand.
For India, he says that we have our higher focus laid on Infra and he expects steel consumption to grow at a rate of GDP growth rate. Going forward, he says ESG will be a very important aspect of the steel Industry and he feels Coal based DRI will have a limited life going forward. He expects Steel Industry dynamics to change as we move towards a greener future.
Post time: Oct-07-2021