India’s Steel Sector To Slowdown On Weak Auto, Manufacturing Demand: Moody’s
A file photo of a worker working in a steel plant in India. (Photographer: Dhiraj Singh/Bloomberg)

India’s Steel Sector To Slowdown On Weak Auto, Manufacturing Demand: Moody’s


India's steel demand will slow down on account of weak auto and manufacturing order, but will remain strongest in Asia, Moody's Investors Service said today.

India will remain the world's second-largest steel producer behind China after having overtaken Japan in 2018, it added.

India’s steel demand growth pace will slow because of weak auto and manufacturing demand. India’s demand growth, remains strongest in Asia even as growth pace slows.
Moody’s Asia: Steel - 2020 Outlook report

The country's steel output will increase on higher capacity utilisation as demand grows. "India's strong demand will keep imports high, but protectionist measures such as import taxes and anti-dumping duties will safeguard domestic steel producers," it said.

The U.S. tariffs will have a limited impact on rated producers' sales. But the prolonged U.S.-China trade disputes will have a spill-over impact through weaker macro conditions, the agency said.

Soft demand from the property and manufacturing sectors will limit Chinese steel demand growth. Korean demand will soften because of the sluggish construction and auto sectors. Demand will weaken in Japan largely driven by the falling needs from the manufacturing sector, it said.

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