India only area of strength in Asian steel market
India is the “only area of strength” in the subdued Asian steel market aided by rising demand and government measures to curb imports like MIP and anti-dumping duties, Moody’s Investor Service said.
“For 2017, we see India as the only area of strength — with rising demand and protectionist measures in place,” Moody’s Vice-President and Senior Analyst Jiming Zou said in a statement.
In India, growing domestic demand, minimum import prices (MIP) and anti-dumping duties will support steel producers, but the increase in their steel production will not offset the fall in regional production, he added.
“We expect EBITDA per tonne to weaken in 2017, given that the robust profitability recorded by steelmakers in mid-2016 is unsustainable against the backdrop of persistent oversupply and the limited ability to pass on rising raw material costs to customers,” Zou said.