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China Steel Demand More Robust Than Imagined - Mr TV Narendran Tata Steel

Steel News - Published on Tue, 18 Jun 2019

Image Source: budget2018.projectstoday.com
Mr TV Narendran, CEO & MD of Tata Steel in an interview with ETNOW while answering to “Do you believe that the rise in iron ore prices will compress Chinese steel margins and cause some mills to go out of operations?” said “The demand in China has been more robust than we had imagined. If we look at the last four months, both the demand and production in China have been in the 9% to 10% range which is very surprising for country which consumes more than 900 million tonnes of steel or about 900 million tonnes of steel so it has been much better than we had imagined. Obviously, a lot of actions are being taken in China domestically to counter the impact of the trade actions by the Trump administration and that is probably getting reflected in greater consumption that we had anticipated. We normally look for how much steel China is exporting. Despite their production going up 10%, because their consumption has also gone up by about 10%, the exports stayed stable at around 5 million tonnes a month which to me is a level the world can live with because even before 2015, China was exporting about 4 to 5 million tonnes a month. The problems happened in 2015 when they exports doubled to 10 million tonnes a month. We still have that 5 million level. The minute it crosses 5 and goes to 6 million tonne, the world should certainly get concerned that it could happen if China slows down more than it has today.”

He said “I hope some of the issues between the US and China would get sorted out in the next few months and the sentiment turn with more positive. A larger concern in Southeast Asia was export from Turkey. But the US is reducing port duties for steel from Turkey from 50% to 25% and so we expect some of the steel from Turkey will flow back to the US. We are basically looking at Turkey, we are looking at the CIS countries and of course Korea, Japan and China because these are the five big exporting countries and Southeast Asia is a region where everyone tries to sell steel into and of course India is a attractive market as well.”

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Posted By : Ratan Singh on Tue, 18 Jun 2019
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