China’s rebalancing away from investment has led to reduced demand for commodities, affecting global markets, including steel
Iron ore and steel prices have dropped sharply in 2024, with iron ore over 30% cheaper and steel prices down by a quarter
India, the second-largest steel producer, plans to boost production to 300 mt by 2030 but faces challenges due to the global price drop
China’s oversupply is flooding global markets, adding pressure on Indian steel producers, who rely on coal imports for production
Indian steel producers are seeking govt intervention through tariffs to protect margins and support capacity expansion plans
The govt must balance avoiding rent-seeking with recognising the pressures caused by Chinese overcapacity in global markets