Home / Property/Construction/ Nippon Steel sees India as most promising market

Nippon Steel sees India as most promising market

Comments / {{hitsCtrl.values.hits}} Views / Thursday, 30 August 2018 00:00

FILE PHOTO: The logo of Nippon Steel & Sumitomo Metal Corp.'s Kimitsu steel plant is pictured at its exhibition hall in Kimitsu, Chiba Prefecture, Japan, - REUTERS


TOKYO (Reuters): Japan’s top steelmaker Nippon Steel & Sumitomo Metal Corp sees India as the most promising market and wants to become “an insider” to capitalise on growth of the world’s third-biggest steel market, a senior executive said.

“India will be the fastest-growing steel market in the world going forward,” Nippon Steel Executive Vice President Katsuhiro Miyamoto told Reuters in an interview on Thursday.

“But since it’s not an easy market to export to due to trade and distribution issues, it’s important for us to become an insider. That’s why we are bidding for Essar Steel,” he said.

Nippon Steel has teamed up with Luxembourg-based ArcelorMittal, the world’s largest steelmaker, to bid around $6 billion for bankrupt Essar Steel, India’s 4th-biggest steelmaker.

But the bidding process has been delayed due to legal battles over eligibility for the bidders.

Asked if he thinks the chances are in their favour in the bidding race, Miyamoto said: “We have always believed so.”

“We have submitted all the documents requested to the National Company Law Appellate Tribunal (NCLAT) and we expect their decision by the end of this month,” he said.

World Steel Association (WSA) forecast steel demand in India will climb 5.5 percent in 2018 and 6 percent in 2019, becoming the fastest-growing market among the world’s top ten steel consumption countries.

Even so, Japan’s steel exports to India nearly halved in 2016 after India imposed duties of up to 20 percent on some hot-rolled flat steel products in September 2015. India also set a floor price in February 2016 for steel product imports to deter countries such as China, Japan and South Korea from undercutting local mills.

Since then, Japan’s annual steel exports to India have been hovering at around 1.3 million tonnes, just 3 percent of the country’s total exports of the metal.

Nippon Steel has a joint venture with India’s Tata Steel to produce cold-rolled sheets for automobiles, but it has little presence in steel used in other areas in the South Asian nation.


Share This Article


1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.


Today's Columnists

In the desert of Tamil films, actor Sivaji Ganesan was an oasis

Saturday, 22 September 2018

‘Indian Film,’ first published in 1963 and co-authored by former Columbia University Professor Erik Barnouw and his student Dr. Subrahmanyam Krishnaswamy, is considered a seminal study of the evolution and growth of Indian cinema. The book is cit

Imran may turn blind eye to blasphemy law and persecution of Ahmadiyyas

Saturday, 22 September 2018

There are clear signs that Pakistan’s freshly minted Prime Minister, Imran Khan, will make a sincere effort to reduce corruption and maladministration in the domestic sphere. In foreign affairs he is likely to make a brave attempt to mend fences wi

The rate of exchange, capital flight and the Central Bank

Friday, 21 September 2018

The Central Bank (CBSL) exists for the sole purpose of price stability. Its controls on the financial system and monetary policy exist to maintain price stability. As put forth many times by the Governor, the failing of the CBSL to control inflation

Red flag over the Sri Lankan Navy

Friday, 21 September 2018

Shocking story Rusiripala, a former banker in Sri Lanka, who has taken to writing in Daily FT, is perturbed by the red flag I have raised (Daily FT article 18 September) over the shocking charge that our Navy had operated a ransom gang that had abduc

Columnists More