China’s Real Estate Stimulus Boosts Indian Steel Industry
Mumbai: Indian steel producers are seeing a positive impact from China’s real estate stimulus package, as Chinese steel prices have risen above domestic levels for the first time in months.
Chinese SteelIndian Steel MarketReal Estate StimulusSteel ImportsSafeguard DutyReal Estate MumbaiOct 21, 2024
Hot-rolled coil (HRC) from China is now being quoted at a premium of ₹3,000 per tonne over domestic prices, according to analysts at BigMint, a market intelligence firm. HRC is currently trading at around ₹48,500 per tonne in Mumbai.
The improvement in sentiment is driven by the recent stimulus package announced by the Chinese government for the real estate sector. This has bolstered the domestic market for steel in China, leading to higher prices. Prior to September, Chinese steel was being sold at a discount, putting significant pressure on Indian steelmakers and pushing domestic prices to their lowest levels in nearly four years.
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Frequently Asked Questions
What is the current impact of China’s real estate stimulus on Indian steel prices?
China’s real estate stimulus has led to a rise in Chinese steel prices, which are now above domestic Indian prices, providing a relief to Indian steelmakers.
What is the current price of hot-rolled coil (HRC) in Mumbai?
The current price of HRC in Mumbai is around ₹48,500 per tonne.
How much steel is India importing from China?
Nearly half of India’s steel imports are from China, with imports in the first half of FY25 reaching about 5.1 million tonnes.
What is the Indian government planning to do to protect domestic steelmakers?
The Indian government is considering the imposition of a safeguard duty on steel imports and has also initiated an anti-dumping investigation into HRC imports from Vietnam.
What is the role of BigMint in the steel market?
BigMint is a leading market intelligence firm that provides analysis and insights into global steel markets, including pricing trends and regulatory developments.
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