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Motilal Oswal: China’s Steel Consumption Remains Strong

India stands to gain if demand for steel and its prices sustain in China.



A coil of cold-rolled full hard steel sits at the manufacturing facility of Uttam Galva Steels Ltd., the Indian unit of ArcelorMittal, in Khopoli, Maharashtra, India (Photographer: Vivek Prakash/Bloomberg)
A coil of cold-rolled full hard steel sits at the manufacturing facility of Uttam Galva Steels Ltd., the Indian unit of ArcelorMittal, in Khopoli, Maharashtra, India (Photographer: Vivek Prakash/Bloomberg)

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Motilal Oswal Report

Steel trade data released by China suggests demand remains strong, with net steel exports declining to 10-year lows in September 2020.

Moreover, high passenger car sales in September 2020 confirm strong end user demand for steel in China.

China’s domestic steel prices are also on the rise again post the National holidays that ended last week.

We believe strong steel demand and prices in China, if it sustains, would be beneficial for steel prices in the region as well as India.

Click on the attachment to read the full report:

Motilal Oswal Metal Sector Update.pdf

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