The global steel industry, which is facing a double whammy of lacklustre demand and Chinese dumping, may take another two-three years to experience a revival, according to Ravi Uppal, CEO and MD, JSPL.
“My personal take is that it will take a few years – 2-3– for the steel industry to revive, the reason being that globally the development rate has come down, especially in infrastructure, so consumption is not going to grow at a big number,” Uppal told ISMW.
He further said that the global steel industry is likely to witness a growth of 2-2.5% in steel consumption during this period.
Underscoring the Chinese influence, he said, “If China continues to insist on producing to its capacity, it will obviously be dumping a lot of steel in various markets. So I think the global recession will continue for another two to three years in steel.”
For the industry’s revival, he said, two things need to follow – first, a reduction in China’s production and capacity, and second, a revival in global demand. But both “will take a little bit of time”, he added.
He, however, observed that the Indian steel industry has a “much better chance” of witnessing faster recovery than the global industry.
Source: India Steel Market Watch