India not to be affected by cooling down of Chinese economy
With a recent statement, Indian Steel Alliance (ISA) announced that cooling down of Chinese economy will not have negative effect on Indian steel sector as
India is not a major exporter of steel products to
China. However, it is added that the effect of Chinese economy on Indian steel sector would only be on the prices in the short run.
In fact, the global steel prices have skyrocketed due to shortage of raw material, resulting in cut in the
production of many mills worldwide, including mills even in
China.
According to the statistics,
China produced 220.1 million tons of steel and imported around 37 million tons of steel products in 2003. As
India's share in the import volume of
China is small, ISA stated that any fluctuation in Chinese economy would not have a big impact on Indian steel sector.