India to be world leader - Oppenheimer

Stemcor's Ralph Oppenheimer thinks that India will be the next shining star of the steel world. Speaking on Thursday during a round table discussion at Made in Steel 2007 in Brescia, Oppenheimer stated that China has been leading the steel industry worldwide in terms of production and consumption, simply because they have been investing in their national infrastructure. Long term steel exporters, South Africa and Russia, have also become importers recently because they have started to invest in their infrastructures as well. Likewise, Oppenheimer said, India needs to invest in its infrastructure. Oppenheimer added that consumption patterns have already changed in the steel industry due to the growth in emerging countries. He thinks production will also increase in emerging markets, especially in those which hold reserves of raw materials, gas, coking coal and ore supplies. The rise in steel demand due to infrastructure investments will trigger production increases. India will be a world leader according to Oppenheimer because there is no iron ore in China and perhaps China has grown excessively in terms of steel production. As China has developed within the space of only four years into a country exporting almost 40 million tons a year from being a net importer of almost 40 million tons, Oppenheimer says the world has lost a market of 70 million tons. Oppenheimer emphasized that there is good chance that India may become the world leader within the next 30 years, by capitalizing on their raw material resources, with the room they have for the increase of domestic steel consumption and their ability to export steel competitively, which is something the Chinese cannot do.