homemarket Newsstocks NewsSteel demand strong but rising imports a cause for worry, says ArcelorMittal Nippon CEO
Steel demand strong but rising imports a cause for worry, says ArcelorMittal Nippon CEO
The data over the last five months suggests India has turned a net importer of steel from being a net exporter, and there is also excess production in China, sad Dilip Oommen, CEO of ArcelorMittal Nippon Steel India (AM/NS) and Executive VP of ArcelorMittal,
While steel demand in the country continues to remain strong driven by the infrastructure push, Dilip Oommen, CEO of ArcelorMittal Nippon Steel India (AM/NS) and Executive VP of ArcelorMittal, says the spike in imports is worrying.
In an interview with CNBC-TV18, Oommen said, "If we look at the data over the last five months, we have turned a net importer from being a net exporter and the problem is that there is an excess production in China and China produces half the steel in the world,” he added.
Coking coal and iron ore prices, he said, have come off, but not in tandem with steel prices. Since the beginning of October, steel prices have come down by 8%, he noted.
“Of late the coking coal prices have come down; iron ore prices in some regions have come down in India as NMDC has announced price reduction,” said Oommen.
State-run NMDC has cut lumps and fines prices by ₹200 per tonne and ₹250 per tonne, respectively, it said in an exchange filing.
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While the prices of lumps are cut to ₹5,800 per tonne, the price of fines is cut to ₹5,060 per tonne.
This is the first price cut undertaken by NMDC since August 2023.
On March 21, global brokerage firm Citi maintained a 'Sell' rating on NMDC and slashed its target price to ₹180 from ₹215 earlier.
Global iron ore prices have corrected from over $130 per tonne to $105 per tonne over the past two months, while NMDC's domestic iron ore prices have remained unchanged, said Citi's analysts in a client note.
ArcelorMittal S.A. is a Luxembourg-based multinational steel manufacturing corporation headquartered in Luxembourg City. It was formed in 2006 from the takeover and merger of Arcelor by Indian-owned Mittal Steel.
For the entire interview, watch the accompanying video
(Edited by : Shweta Mungre)
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