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Is the Steel Sector's Recovery Under Threat?
Mar 7, 2018


India's steel industry was just coming out of a rough patch.

Demand was picking up. Steel prices were on the rise. Buyers were lining up to pick up stressed assets. With the expected pick up in the investment cycle, the sector was on the upswing.

India's Steel exports were on a roll.

Then Donald Trump spoiled the party. The US government plans to impose a 25% tariff on steel and a 10% tariff on aluminium.

India produces a lot of both commodities but internationally, we are not a big player. The US imports only 2.4% of steel and 2% aluminium from India.

But it's not so simple.

With the new US tariffs, major exporters like South Korea will look to sell in other countries. This would lead to a glut and as a result, lower prices.

This could threaten the nascent recovery in the industry.

Data Source: Joint Plant Committee, Livemint

This Chart Of The Day was published in The 5 Minute WrapUp - Donald Trump's Trade War Can't Stop Sensex 100,000 but it Can Cause a 30% Crash

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