The global steel market may not be bright, but no need to steel yourself for a shock. India is there, true as steel.
When world prices are plunging, embattled steelmakers are pinning hopes on India – Asia's second-largest emerging market – to put the pedal to the metal.
“There is really only one location that has the long-term potential to pull the global steel market out of its current slump, and that is India,” Edwin Basson, director-general of the World Steel Association, a trade group, was quoted as saying to Financial Times.
India's growth rates are set to stay above 7% over the next two years, boosting carmakers and steel-consuming sectors. Moreover, India is adding capacity too, with Tata Steel opening a new plant in Orissa, which will nearly double its output.
India is the world's fourth-largest steel producer and is expected to overtake the US for third place in the next couple of years.