According to Moody's Investors Service, India's steel exports are projected to stay robust in the coming months as higher pricing and regional demand encourage steel producers to divert a portion of their output to exports.
'We expect India's steel exports to remain strong in the coming months Moody's Investors Service said in its report. Higher raw material costs restrict the impact of steel price gains during Ukraine conflict, it said.' Domestic steel demand is expected to expand by about 10% through 2022, Moody's said, as the government continues to focus on the building of roads, trains, ports, and airports. "Pent-up demand for automobiles and white goods is also a major element. "However, the chronic semiconductor shortage continues to be a hindrance to car sales," it stated.
Rated steel producers with high raw material self-sufficiency are better positioned to weather the risks associated with growing raw material costs and potential supply disruptions.
Because of their backward integration into the manufacturing of essential steelmaking inputs, rated steelmakers in India, such as Tata Steel and JSW Steel Limited, are better protected from these risks.
Through mining investments, Korean steelmaker POSCO Holdings Inc and Chinese steelmaker China Baowu Steel Group Corporation Ltd have moderate self-sufficiency.