2024: A Challenging Year for Indian Steelmakers
Impact of Rising Imports from China
Amidst the challenges faced by Indian steelmakers in 2024, the surge in finished steel imports from China has been a significant obstacle. India saw a record high of 6.5 million metric tons of finished steel imported from China during the first eight months of FY25, making it a net importer of steel during this period. The inflow of 1.96 million metric tons of steel from China to India marked a 22.8% increase year-on-year, indicating the impact of this trend on the industry.
Interview with Anurag Mantri, Jindal Stainless
Invezz had the opportunity to speak with Anurag Mantri, the executive director and group CFO of Jindal Stainless, India’s largest stainless steel producer. Mantri shed light on the implications of the rising imports on the industry, the state of domestic demand, and the company’s strategies for the second half of the year.
Domestic Demand Driving Growth
Despite the challenges posed by imports from China, the domestic demand for stainless steel in India has shown steady growth. Various sectors such as railways, industrial P&T, lifts and elevators are fueling this demand. Projects like Vande Bharat sleeper trains and Vande Metro are adopting higher-grade stainless steel, indicating a positive shift in the industry.
Raw Material Security and Operational Efficiency
Jindal Stainless recently entered into a joint venture in Indonesia to enhance its raw material security. The commissioning of a nickel pig iron smelting facility in Indonesia ahead of schedule is a strategic move that will strengthen the company’s operational efficiency in the face of global challenges.
Global Export Diversification
In response to export challenges caused by factors such as weak demand in the US and EU, Jindal Stainless is focusing on diversifying its export markets. Regions like South America, Korea, Canada, and the Middle East show potential for growth, helping to balance out the impact of the global challenges.
Impact on India and the World
Impact on India
The surge in steel imports from China poses a significant challenge for Indian steelmakers, especially MSME producers who are under pressure. The need for safeguard measures, stricter implementation of standards, and a level playing field for domestic manufacturers are critical to sustaining the industry.
Impact on the World
The global steel industry is facing challenges due to factors like weak demand in the US and EU, geopolitical conflicts, and economic slowdown in countries like Germany. While tariffs imposed by the US may have ripple effects globally, efforts to diversify export markets and focus on value-added segments are strategies to mitigate these challenges.
Conclusion
Despite the challenges faced by Indian steelmakers in 2024, the industry remains resilient and focused on growth opportunities. The surge in imports from China has underscored the need for domestic manufacturers to adapt strategies to ensure competitiveness. By focusing on domestic demand, raw material security, export diversification, and operational efficiency, companies like Jindal Stainless are navigating the challenges and striving for sustainable growth in the global steel market.
