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New Delhi: Steel companies in the country are likely to face margin pressure in the third quarter of FY25 as muted steel prices compress spreads, according to a report by Axis Securities. The report stated that the weak demand in China and higher exports from the country have been identified as key factors behind the decline in steel prices. The report highlighted that <keyword id="24048830" type="General" weightage="20" keywordseo="Chinese-steel-exports" source="keywords">Chinese steel exports</keyword> reached 92 million tonnes per annum (MTPA) between January and October 2024, marking a 22 per cent year-on-year increase. This has led to an oversupply in the global market, weighing down prices domestically. It said "Weak Chinese domestic demand along with higher Chinese exports has led to a decline in steel prices in India. Chinese steel exports from Jan'24 to Oct'24 stood at 92 MTPA, up 22 per cent YoY" In India, the average price of hot-rolled coil (HRC) steel in the trader's market in Mumbai fell by 8 per cent year-on-year and 6 per cent quarter-on-quarter to Rs 51,802 per tonne in the second quarter of FY25. Spot prices have further declined to Rs 49,000 per tonne, 5 per cent lower than the Q2FY25 average. The report also noted some signs of recovery in China's residential property sector, with increased transactions in major cities following policy measures aimed at boosting demand. However, challenges remain, as the three-month moving average of year-to-date floor space declined by 19 per cent year-on-year in September 2024, remaining in negative territory. It said "China's residential property sector is showing some signs of improvement with the transactions in major cities rising after recent policy measures introduced to boost demand". On the global front, the report noted that the probability of a 25-basis point rate cut by the US Federal Reserve in its December 2024 meeting has fallen to 58.9 per cent, down from 76.8 per cent in October 2024, owing to strong economic data from the US. Additionally, China has removed a 13 per cent export rebate on aluminum and copper, effective December 1, 2024, in response to anticipated tariff measures by the new US administration. These developments highlight the ongoing challenges and potential shifts in the global and domestic steel and metals markets.

Falling steel prices amid Chinese export surge, to reduce profits of companies in Q3 FY25: Report

Last week, the President of the United States, <keyword id="19919748" type="General" weightage="20" keywordseo="joe-biden" source="keywords">Joe Biden</keyword>, announced significant tariffs on a range of <keyword id="20139085" type="General" weightage="20" keywordseo="Chinese-products" source="keywords">Chinese products</keyword> to protect American workers from unfair trade practices. The targetted measures include a 100% tariff on <keyword id="6354973" type="General" weightage="20" keywordseo="electric-vehicles" source="Orion">electric vehicles</keyword>, a 50% tariff on semiconductors and solar cells, and a 25% tariffs on batteries, steel and aluminium products, some critical minerals, and essential health equipment like medical gloves, syringes and needles. In his address from the Rose Garden of the White House, Biden said America can continue to buy any kind of car they want, "but we're never going to allow China to unfairly control the market for these cars. Period." He claimed that the Chinese government has been investing state funds in various Chinese companies for years, spanning industries across the above-mentioned sectors. How does this brewing geopolitical <keyword id="20736760" type="General" weightage="20" keywordseo="trade-war" source="keywords">trade war</keyword> impact <keyword id="20742235" type="General" weightage="20" keywordseo="Indian-firms" source="keywords">Indian firms</keyword>? Experts say the impact could be in two ways, benefitting some sectors, while harming the few others. Let’s start with the bad news. <cmsannotation type="cmsannotation" annotationid="Threat to Indian firms" comment="subhead" text="Threat to Indian firms">Threat to Indian firms</cmsannotation> Beijing offers significant subsidies on most of these products, leading to surplus production that exceeds domestic and even regular export demand. Subsequently, Chinese companies are known to flood the global markets with surplus products at unreasonably low prices, forcing local manufacturers out of business in many countries, including <keyword id="19895063" type="General" weightage="20" keywordseo="India" source="keywords">India</keyword>. A prime example of this in practice can be found in the steel sector, where weak domestic demand is pushing the world’s largest steel producer China to offload surplus production into Indian markets at cheaper prices. Indian steel manufacturers are already struggling to compete with a glut of cheaper Chinese steel, with shipments nearly doubling year-on-year in the financial year ending March 2024. “India is already under grave threat of import because all major steel consuming economies are shutting their doors on these steel producing countries. We are highly vulnerable to surging and predatory import,” said Alok Sahay, secretary general of the Indian Steel Association, to Reuters. Global trade experts say that a majority of Chinese products are sold at unreasonably low prices in global markets because the companies in these sectors do not have to worry about profits. They are heavily subsidised by the Chinese government. <keyword id="20279291" type="General" weightage="20" keywordseo="Steel-Authority-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Steel Authority of India" meta.hostid="261" meta.entityid="Steel Authority of India">Steel Authority of India</keyword>’s (SAIL) chairman Amarendu Prakash also said that they are keenly watching Chinese imports after the US tariff increases. Additionally, China has been accused of employing anti-competitive strategies like compelling foreign companies to transfer their technology in order to operate in China. These factors have led to the US effectively shutting its door on several Chinese products through heightened tariffs, and other developed markets like Canada are also likely to follow suit. White House also emphasised that it continues to consult with its partners and allies who are facing similar threats from China’s unfair trade practices and are keen on taking action. If more and more global markets restrict entry of Chinese products, the risk of the majority of such products being dumped in neighbouring India increases drastically. Trying to block Chinese excess production "is like squeezing a balloon. It shrinks in one place and pops out in another," William Reinsch, a trade expert at the Center for Strategic and International Studies in Washington, tells Reuters. <cmsannotation type="cmsannotation" annotationid="An opportunity also arises" comment="subhead" text="An opportunity also arises">An opportunity also arises</cmsannotation> While some products risk being dumped into the Indian market, in a few other cases, Indian firms could benefit from fresh openings in the lucrative US market. "Of the products affected, India has opportunities in face masks, PPE, syringes &amp;needles, medical gloves, aluminium, iron, and steel. Opportunity may come in China also with retaliation, provided we have market access in products targeted by China," Ajay Sahai, Director General of the Federation of Indian Export Organisations (FIEO), told ANI. However, China is not likely to retaliate against the US tariffs at the moment, say experts, though the country’s Ministry of Commerce said it would take 'resolute measures to safeguard its own rights and interests' "China's economy is fragile. With household spending and the property market on the wane, manufacturing for export markets is one of its few bright spots. Beijing will not want to cut off its nose to spite its face. More broadly, China is desperately trying to encourage new foreign investment. Rash retaliatory action could spoil its case," Moody's Analytics explained in a recent report. Out of China's USD 420 billion exports to the US, only USD 18 billion is impacted due to the latest hike in tariffs — representing slightly over 4% and therefore considered marginal. But Sahai says that this market will continue to grow with time and provides an opportunity to India and other competitors to chip in the supply gap. Ajay Srivastava, the founder of the Global Trade Research Initiative (GTRI), also echoes Sahai’s opinions. He emphasised that the increased duties on Chinese face masks, syringes, needles, medical gloves, and natural graphite offer a substantial opportunity for India, as quoted by ANI. "By ramping up production and export of these in-demand products, India could enhance its trade footprint in the US market," he added. In terms of products like electric vehicles and semiconductors, India remains a net importer, and therefore, may not be in a position to capitalise right now. In the long term, however, as India begins semiconductor production at scale in 2025, there will be opportunities to export some of it to the US and other European countries, offering fresh impetus for domestic manufacturing. As the security risks associated with importing Chinese semiconductors prompts more and more trade barriers from the Western countries, demand for supply from India is likely to grow. Efforts are already underway for the establishment of four large semiconductor plants in India, with three located in Gujarat and one in Assam. Last fiscal year, Indian exports to the US dipped marginally by 1.32 per cent to $77.5 billion as against $78.54 billion in 2022-23. The new development now gives an unique opportunity to turn the tide over the next few years. Overall, some sectors like steel and aluminium do face a serious challenge due to the fresh US tariffs on Chinese products. However, the development will open new avenues for Western market entry and expansion for several other products. (With inputs from agencies)

US-China tariff war could benefit several sectors in India while harming a few others

<ul class="summary-list"><li>US President President Biden has called for a tripling of tariffs on Chinese steel and aluminum.</li><li>China is now exporting the most steel since 2016, when it was accused of causing a global glut.</li></ul>US President Joe Biden last week <a target="_blank" href="https://www.businessinsider.com/biden-sells-blue-collar-workers-american-dream-failing-china-steel-2024-4">called for</a> a tripling of tariffs on Chinese steel and aluminum imports, echoing former <a target="_blank" href="https://www.businessinsider.com/trump-tariff-china-trade-war-consumer-goods-2018-9">President Donald Trump's levies</a> on a range of goods from China.Biden — who is the frontrunner for the Democratic Party's presidential nominee — said China's steel production was backed by state funds, which enable the commodity to be sold cheaply to the US. He wants to hike a key tariff on Chinese steel and aluminum from 7.5% to 25%.Trump — who is the GOP's frontrunner — said in February he would slap tariffs of over 60% on Chinese goods if he's elected.The one-upmanship between the two is likely to get more intense this election year as China's economy struggles to consume all that it's producing.<h2>China is now exporting the most steel since 2016</h2>Already, China is exporting the most steel since it was accused of <a target="_blank" href="https://www.bloomberg.com/news/articles/2016-09-03/global-steel-glut-said-to-be-mentioned-in-g-20-draft-communique">causing a glut</a> nearly a decade ago.In March, China exported 9.9 million metric tons of steel — about 25% higher than a year earlier and the highest since 2016, according to a <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-04-12/china-steel-exports-hit-highest-since-2016-on-weak-local-demand">Bloomberg analysis</a> of official data earlier this month.The surge in exports followed a slump in China's real-estate sector that has cut demand for the building material."Steel, cement, and construction machinery are some of the worst-hit sectors, with excess capacity stemming from structural contraction in demand," Chim Lee, a China analyst at the Economist Intelligence Unit, wrote in an April 15 note.However, the US isn't a large Chinese steel importer. The country is the <a target="_blank" href="https://www.reuters.com/markets/commodities/chinas-steel-sector-has-bigger-worries-than-biden-tariff-hike-2024-04-19/">seventh-largest steel shipper</a> to the US, so Biden's threat is mostly symbolic."I want fair competition with China, not conflict, and we're in a stronger position to win the economic competition of the 21st century against China or anyone else," Biden said last week.<h2>Trade tensions will be high this election year</h2>Beijing hit back against Biden's criticism of China's industrial policy and accused the US of electioneering.Lin Jian, a <a target="_blank" href="https://www.fmprc.gov.cn/eng/xwfw_665399/s2510_665401/2511_665403/202404/t20240419_11285233.html">Chinese foreign ministry</a> spokesperson, said at a Friday press conference that the American president's comments were "far-fetched."Lin added that China's steel sector is geared toward meeting domestic demand and doesn't receive any export-oriented subsidies. He also accused the US of a "double standard" for implementing domestic subsidies and for using export controls on the pretext of national security."We urge the US to be prudent in its words and deeds, stop manipulating issues on China in the election year, stop turning economic and trade issues into security ones, lift additional tariffs on China, and stop imposing new ones," said Lin.Still, China's current wave of steel exports is already spooking some countries, including <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-04-21/chile-slaps-tariffs-on-chinese-steel-to-bolster-local-industry">Chile</a> and <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-04-23/brazil-joins-protectionist-wave-in-face-of-cheap-steel-imports">Brazil</a> that have, respectively, imposed higher temporary tariffs and import quotas on the commodity.<a target="_blank" href="https://www.businessinsider.com/china-economy-overcapacity-dumping-manufacturing-exports-economic-woes-world-yellen-2024-4">US Treasury Secretary Janet Yellen</a> slammed China's overproduction earlier this month, saying the problem went beyond the US."China is now simply too large for the rest of the world to absorb this enormous capacity," said Yellen during her visit to China.With the US election ahead and China's economy in a <a target="_blank" href="https://www.businessinsider.com/china-two-speed-economy-sectors-thriving-new-three-green-sustanability-travel-2024-2">painful transition,</a> it'll be a tough year for <a target="_blank" href="https://www.businessinsider.com/us-china-relations-more-engagement-not-more-trust-taiwan-clash-2024-4">trade relations</a>."Trade tensions related to steel and construction machinery will be high in 2024," wrote the EIU's Lee.

Biden is fighting Trump's tough tactics by calling for tripled tariffs on Chinese steel imports

<ul class="summary-list"><li>Canada has announced it will impose a 100% import tax on EVs from China.</li><li>It's following in the footsteps of the US and Europe, which have implemented their own trade barriers.</li></ul>Canada has become the latest country to crack down on Chinese EVs.The Canadian government <a target="_blank" class="" href="https://www.canada.ca/en/department-finance/news/2024/08/canada-implementing-measures-to-protect-canadian-workers-and-key-economic-sectors-from-unfair-chinese-trade-practices.html">announced Monday</a> that it will impose a 100% tax on all China-made EVs from October after <a target="_blank" class="" href="https://www.businessinsider.com/white-house-joe-biden-hikes-tariffs-on-chinese-made-evs-2024-5">the US</a> and <a target="_blank" class="" href="https://www.businessinsider.com/chinese-ev-companies-hit-with-new-tariffs-in-the-eu-2024-6">EU unveiled their own trade barriers</a> earlier this year.The tariffs, which also include a 25% tax on steel and aluminum products from China, will apply in addition to an existing 6.1% tax on China-made EVs.Western countries are cracking down on China's EV giants over fears that <a target="_blank" class="" href="https://www.businessinsider.com/cheap-chinese-electric-cars-will-upend-the-us-vehicle-market-2023-5">a wave of cheap Chinese vehicles</a> could soon upend their automotive industries.Chinese automakers such as BYD, which <a target="_blank" class="" href="https://www.businessinsider.com/byd-cheap-ev-seagull-coming-to-europe-china-us-tariffs-2024-5">sells cars from around $10,000 in China</a>, have expanded rapidly in recent years and are <a target="_blank" class="" href="https://www.businessinsider.com/byd-saic-chinese-ev-makers-plot-world-takeover-2024-6">setting up factories around the world</a>.Canada's new trade barriers could prove problematic for both Tesla and BYD, which have been locked <a target="_blank" class="" href="https://www.businessinsider.com/ken-griffin-on-chinas-byd-ev-outperforming-elon-musks-tesla-2024-1">in a global battle for EV dominance</a>.A Canadian official <a target="_blank" class="" href="https://www.reuters.com/business/autos-transportation/trudeau-says-canada-impose-100-tariff-chinese-evs-2024-08-26/">confirmed to Reuters</a> that the 100% tariff will apply to cars made by Tesla in China.While its not clear how many EVs Tesla exports from China to Canada, the new tariffs could force the automaker to shift production to markets with friendlier trade agreements with Canada, such as the US.BYD, meanwhile, has been considering entering the Canadian market, according to a regulatory filing <a target="_blank" class="" href="https://www.reuters.com/business/autos-transportation/chinas-byd-explores-canadian-auto-market-entry-regulatory-filing-2024-07-30/">reported by Reuters</a>.The carmaker launched <a target="_blank" class="" href="https://www.businessinsider.com/byd-shark-plug-in-hybrid-pickup-truck-americans-cant-have-2024-5">a hybrid pickup truck called the Shark</a> in Mexico earlier this year as it continues to expand into North America, but the new round of tariffs could complicate any attempt to sell its electric vehicles in the US' northern neighbor.Canada's crackdown on Chinese EVs follows in the footsteps of the US and the EU, which have both imposed sweeping new tariffs on Chinese electric vehicles in recent months.President Joe Biden <a target="_blank" class="" href="https://www.businessinsider.com/white-house-joe-biden-hikes-tariffs-on-chinese-made-evs-2024-5">announced a 100% tariff</a> on Chinese EVs back in May, while the <a target="_blank" rel="noopener noreferrer" class="c-link c-link--focus-visible" href="https://ec.europa.eu/commission/presscorner/detail/en/ip_24_4301">EU has imposed tariffs of up</a> to 36.3% on Chinese manufacturers.Tesla and BYD did not respond to a request for comment from Business Insider, made outside normal working hours.

Canada is the latest country to crack down on Chinese EVs

<ul class="summary-list"><li>The White House has announced it will impose tariffs on $18 billion of Chinese goods.</li><li>The new measures target Chinese electric vehicles, with those tariffs rising from 25% to 100%. </li></ul>Joe Biden has hiked tariffs on Chinese electric cars as he looks to protect the US auto industry from a <a target="_blank" rel="" href="https://www.businessinsider.com/cheap-chinese-electric-cars-will-upend-the-us-vehicle-market-2023-5">wave of cheap vehicles</a>.<a target="_blank" href="https://www.whitehouse.gov/briefing-room/statements-releases/2024/05/14/fact-sheet-president-biden-takes-action-to-protect-american-workers-and-businesses-from-chinas-unfair-trade-practices/">The White House</a> announced early on Tuesday that it was imposing tariffs on $18 billion of Chinese goods, including a 100% tax on Chinese-made electric vehicles.The new tariffs also target lithium batteries, solar cells, and semiconductors and are likely to inflame tensions between the two economic superpowers further.The rise in tariffs on Chinese EVs — from 25% to 100% — will probably be a relief for the US auto industry, which has become increasingly nervous about the prospect of competing with <a target="_blank" href="https://www.businessinsider.com/china-tesla-electric-vehicle-market-dominance-competition-byd-aion-wuling-2024-4">Chinese companies selling EVs</a> for much cheaper.The 25% tariff has largely made it too expensive for Chinese automakers to set up shop in the US.But Tesla rivals such as BYD, which <a target="_blank" href="https://www.businessinsider.com/byd-seagull-cheap-ev-electric-car-tesla-china-2023-4">sells cars for as little as $11,000</a> in China, have been stepping up their plans to export to other countries as competition becomes increasingly brutal back home.Reports that BYD and its fellow Chinese automakers MG and Chery were planning to <a target="_blank" href="https://www.businessinsider.com/chinese-ev-companies-byd-mg-plan-factories-mexico-washington-concern-2023-12">build factories in Mexico</a> sparked concern from US lawmakers, with several warning that the move could give them a "backdoor" to the US market.The latest round of tariffs, which also target steel, aluminum, and medical products such as face masks and respirators, don't go as far as those proposed by Donald Trump, who has said he'll introduce a <a target="_blank" href="https://www.cnbc.com/2024/02/04/trump-floats-more-than-60percent-tariffs-on-chinese-imports.html">60% tax on all Chinese imports</a> if elected president in November.

Biden announces a 100% tariff on Chinese EVs

The Indian <keyword id="80584" type="General" weightage="20" keywordseo="steel-sector" source="Orion">steel sector</keyword> has enjoyed a multi-year demand surge which will continue in the current FY'24 but it is expected to moderate in the coming fiscal, global analytics company Crisil said. The sector has witnessed double digit demand growth rate of 11 to 13 per cent during three consecutive years and is likely to moderate to 3 to 5 per cent in FY'25, Miren Lodha, Director Research, Crisil Market Intelligence and Analytics said on Friday. "We are clearly in the midst of a demand supercycle," Lodha told PTI. The moderation is likely in the long <keyword id="34570" type="General" weightage="20" keywordseo="steel" source="Orion">steel</keyword> segment in FY'25 ahead of the general election. The only other instance of such a demand surge in the last two decades was between 2006 to 2008, he said. Lodha said the <keyword id="17408" type="General" weightage="20" keywordseo="infrastructure" source="Orion">infrastructure</keyword> sector, a key driver of the steel demand, is expected to maintain its momentum fuelled by ongoing government projects. The infrastructure segment has been driving a lot of momentum in the steel demand and is expected to continue in the coming years. However, government schemes like the Pradhan Mantri Awas Yojana are nearing conclusion, which could slow down the demand momentum in the steel sector, he said. Lodha said the recent surge in steel imports, which has been prompted by lower Chinese prices and strong Indian demand, has raised concern among the domestic manufacturers. "The disparity between import and <keyword id="124052" type="General" weightage="20" keywordseo="domestic-prices" source="Orion">domestic prices</keyword> has triggered significant imports," he elaborated. But it will self correct in the long run with the ongoing capacity addition. "New steelmaking capacity of 12-13 million tonnes is expected to come online in the second half of fiscal 25, aligning production with demand and reducing import dependence," Lodha said. Additionally, the potential demand improvement in China after the Lunar New Year coupled with expected production cuts, could further curb Chinese exports to India. Overall the Indian steel sector's outlook remains positive, albeit with a projected dip in demand next year. The industry's focus will be on ramping up domestic production and tackling import concerns to maintain a robust long-term growth, he added.

Indian steel demand boom to continue this fiscal : Crisil

Strong <keyword id="141166" type="General" weightage="20" keywordseo="domestic-demand" source="Orion">domestic demand</keyword>, supported by government spending on infrastructure, building and construction segments, is expected to keep <keyword id="3658" type="General" weightage="20" keywordseo="india" source="Orion">India</keyword>'s <keyword id="164590" type="General" weightage="20" keywordseo="steel-imports" source="Orion">steel imports</keyword> elevated around the 6 million tonne (MT) mark this financial year even as the global <keyword id="34570" type="General" weightage="20" keywordseo="steel" source="Orion">steel</keyword> industry battles a slowdown, according to rating agency Crisil. Global steel demand, which has been subdued since the onset of the Russia-Ukraine conflict, is expected to grow 1.6 per cent in 2023 after a sharp fall of 3.3 per cent in 2022, the rating agency said in a report. Indeed, even that tepid rate of growth rides largely on a buoyant 13 per cent growth in demand in India, which has bucked the trend so far. This fiscal, the steel sector in India is poised to clock its third consecutive year of double-digit growth, at 11-13 per cent year-on-year, after growing 11.4 per cent and 13.4 per cent in fiscals 2022 and 2023, respectively. According to the rating agency, demand in <keyword id="1334" type="General" weightage="20" keywordseo="china" source="Orion">China</keyword>, the world's largest producer of the commodity, has started reviving after a three-year slump. However, oversupply has led to subdued <keyword id="6366990" type="General" weightage="20" keywordseo="prices" source="Orion">prices</keyword>. "Over the past few months, Chinese mills have been facing margin pressure, mainly due to high raw material prices and a depreciating yuan. Although the Chinese government is trying to keep demand afloat with infrastructure spending and relaxing policies on property ownership, real estate continues to be in a recessionary phase," the rating agency noted. Chinese mills have started pushing volumes into the global market at highly competitive prices. Between January and November this year, exports from China increased by 35.6 per cent to 82.7 million tonnes -- the highest since 2016. Chinese exports to India have also surged. Strong growth momentum has supported steel prices in India, and import volumes have increased significantly, driven by better realisation opportunities. As of November this fiscal, India had imported 4.26 million tonnes of finished steel, up 13.4 per cent year-on-year even as its exports declined 6.2 per cent to 4.03 million tonnes, making the country a net importer of finished steel. Among the ports, Mumbai remains the preferred destination for both alloy and non-alloy imports, accounting for 40 per cent of the total imports, followed by Mundra and Chennai. "This imbalance of volume at the ports leads to regional disparities in domestic prices. For instance, although prices of flat products corrected across India in November, the fall in trader prices was more significant in Mumbai compared with other major domestic steel markets," the rating agency noted.

Firm domestic demand to keep India's steel imports elevated in 2023-24: Crisil

<ul class="summary-list"><li>US Treasury Secretary Janet Yellen warns that China's big industrial-production push could destabilize the global economy.</li><li>China's growing clean energy industry has oversupplied markets with cheap solar panels and EVs, she said in prepared comments that will be delivered on Wednesday.</li></ul>China is flooding markets with a lot of cheap green energy products, and Treasury Secretary Janet Yellen is concerned about what it means for the global economy.Yellen is set to speak at the Suniva solar cell factory in Norcross, Georgia on Wednesday, where she is expected to address concerns about China's export strategy."China's overcapacity distorts global prices and production patterns and hurts American firms and workers, as well as firms and workers around the world," a copy of Yellen's remarks <a href="https://www.nytimes.com/2024/03/27/business/yellen-china-green-technology.html#:~:text=At%20the%20Suniva%20solar%20cell,by%20The%20New%20York%20Times">reviewed</a> by the New York Times said. "Challenges for individual firms can lead to concentrated supply chains, negatively impacting global economic resilience."After suffering a sweeping property crisis, China is jump-starting its trying to jumpstart its economy with a strong industrial push, incentivizing <a href="https://www.businessinsider.com/us-inflation-outlook-china-economy-crash-stimulus-package-manufacturing-investment-2024-3">investment in the manufacturing sector.</a> And that policy shift includes a focus on clean energy. A recent report from the New York Federal Reserve shows the country is seeing a notable redistribution of credit, with a swift rise in new "green loans."Last year, China's ballooning clean energy industry contributed to <a href="https://markets.businessinsider.com/news/stocks/china-economy-slowdown-gdp-real-estate-crash-crisis-clean-energy-2024-1">40% of the country's economic growth.</a>But that comes with consequences. Yellen's remarks warn that this is history repeating itself, like when China overinvested in steel and aluminum, which promoted economic growth in the country but forced the industry in the rest of the world to contract.This trend has already been manifesting in markets like that for solar panels. <a href="https://markets.businessinsider.com/news/commodities/solar-panel-oversupply-prices-iea-renewables-production-green-transitions-inventory-2024-1">Solar panel prices have plunged</a> 50% because of a substantial oversupply. In Europe, <a href="https://markets.businessinsider.com/news/stocks/solar-panel-oversupply-price-crash-europe-production-plant-meyer-burger-2024-1?mrfhud=true">a glut of Chinese imports have pushed</a> one of their largest solar module production sites to close. According to the IEA, China is set to account for 85% of the expansion of solar-module manufacturing capacity by 2028. "It is important to the president and me that American firms and workers can compete on a level playing field," the excerpts reportedly said. "We have raised overcapacity in previous discussions with China, and I plan to make it a key issue in discussions during my next trip there."

China's industrial push risks destabilizing the global economy and watering down green-energy exports, Janet Yellen warns

<keyword id="64275" type="General" weightage="20" keywordseo="jindal-stainless" source="Orion">Jindal Stainless</keyword> Ltd (<keyword id="74606" type="General" weightage="50" keywordseo="jsl" source="Orion">JSL</keyword>) on Thursday said its consolidated net profit has more than doubled to Rs 764.03 crore in the September quarter, on the back of higher income. It had clocked Rs 347.02 crore net profit in the year-ago period, JSL said in a regulatory filing on Thursday. The company's total income increased to Rs 9,828.97 crore in the second quarter of the current fiscal as against Rs 8,776.61 crore a year ago. JSL's expenses were at Rs 8,944.04 crore, higher than the Rs 8,335.52 crore it reported a year ago. In a separate statement, JSL Managing Director Abhy per cuday Jindal, said, "Our domestic sales increased year-on-year (y-o-y), buoyed by the government's push for stainless steel in strategic sectors." "As we wait for the <keyword id="19198542" type="General" weightage="50" keywordseo="national-stainless-steel-policy" source="Orion">National Stainless Steel Policy</keyword>, we are confident that the per capita consumption of stainless steel in India will increase from the current 2.8 kg in the coming years," he said. Chinese imports have increased by nearly 55% year-on-year, which highlights the unchecked dumping of subsidised and substandard Chinese products in the Indian market, the MD said. The industry expects the government to take notice of the continuously increasing imports from China, which is hurting the sector, especially the MSMEs and as well the government's vision of an Atmanirbhar Bharat, he added. During the September quarter, the company's earnings before interest, taxes, depreciation, and amortisation was at Rs 1,231 crore, up by 80% y-o-y. "The board also approved the proposal to explore the option for selling/liquidating/divesting equity stake in its subsidiary, PT Jindal Stainless, Indonesia (PTJSI), at Gresik, Indonesia," the statement said. "The decision was taken in the wake of unfavourable market conditions in Indonesia due to the lack of a level-playing field and competition with Chinese products," it said. Most of the Indonesian market is dominated by Chinese players, and therefore, major markets such as the US and the EU have levied severe trade protection measures on exports of stainless steel products from Indonesia. The Board of Directors also approved an interim dividend Re 1 per equity share (face value of Rs 2 each) for FY24. The record date for determining the entitlement of shareholders has been set as October 28. The dividend shall be paid on or before November 17, the company said, adding that the aggregate payout will be nearly Rs 82.34 crore. The sales volume for the second quarter stood at 543,619 metric tonnes, up by nearly 26% y-o-y, owing to robust domestic demand. Ahead of the upcoming festive season, the company's sales in the auto segment -- besides other consumer-facing segments -- witnessed an uptick, the statement said.

Jindal Stainless Q2 net profit more than doubles to Rs 764 crore

<ul class="summary-list"><li><keyword id="11916714" type="UNKNOWN" weightage="60" keywordseo="copper" source="Orion">Copper</keyword> and <keyword id="11895967" type="UNKNOWN" weightage="60" keywordseo="iron-ore" source="Orion">iron ore</keyword> prices have been knocked down sharply in August after steadily running higher since early 2020. </li><li>Iron ore prices have lost nearly 30% on demand concerns and China's orders to curb <keyword id="11916715" type="UNKNOWN" weightage="60" keywordseo="steel" source="Orion">steel</keyword> production. </li><li>"Dr. Copper" as a barometer of economic health is being hurt while COVID cases ramp up. </li></ul>Copper and iron ore prices have been slammed this month by demand worries as the coronavirus crisis wears on, while iron ore faces industry-specific pressure as China demands curbs on steel production, prompting questions about whether prices for the industrial metals can return to highs for the year. Benchmark <a href="https://markets.businessinsider.com/commodities/iron-ore-price">iron ore prices</a> with 62% iron content in August have tumbled roughly 26% to trade above $156 per metric ton, driving to levels not seen since February. Copper has dropped more than 8% to fetch about $4.111 per pound, the lowest in about four months. The downward slope comes after prices for the metals had been climbing since March 2020 when they dropped alongside a crash in US stocks as the COVID-19 pandemic threatened to push economies worldwide into recession. "If you think about from the March 2020 S&amp;P 500 market low to the first half of this year, you saw copper just continue to go higher and that argument of strong metals like copper and strong <keyword id="11893875" type="UNKNOWN" weightage="100" keywordseo="markets" source="Orion">markets</keyword> made sense because higher copper prices imply <keyword id="11916717" type="UNKNOWN" weightage="60" keywordseo="economic-growth" source="Orion">economic growth</keyword> and economic activity and a need for copper," David Keller, chief market strategist at Stockcharts.com, told Insider. Iron ore like copper is an important industrial metal as it is a key raw material used to make steel. Production volume of about 2 billion tonnes and export volume of around 1.5 billion tonnes makes iron ore the third-largest commodity in terms of production volume after crude oil and coal, and the second-most traded commodity after crude oil, according to the World Steel Association.The rollout of COVID-19 vaccinations along with worldwide fiscal and monetary policy stimulus efforts have helped support the upswing in prices for the metals. But investors appear to be growing more cautious about the outlook for continued economic recovery as coronavirus cases increase on the back of the highly transmissible Delta variant.Meanwhile, the US Federal Reserve appears on the path this year <a href="https://www.businessinsider.com/tapering-federal-reserve-meeting-minutes-fomc-july-asset-purchases-timing-2021-8">toward reducing the emergency asset purchases</a> it put in place to help the economy weather the COVID crisis, a worrisome prospect for some investors who see the central bank's asset purchases as fostering economic recovery and stoking demand for industrial metals like copper as building projects restart or get underway. Supply constraints had also helped pull up copper prices this year. For iron ore, Bank of America this week said prices have peaked in part as supply has been catching up with demand. It noted that steel production in China had posted a run of seasonal highs since June 2020 largely because of a rebound after the start of the COVID pandemic. "That said, output growth has been slowing," driven by a confluence of factors, said BofA commodity strategists led by Michael Widmer. "Looking at demand first, growth has been grinding to a halt, as activity has become patchier, with construction and automotives particular headwinds."As well, the Chinese government has ordered steel mills to limit production in part to cut down on carbon emissions. It also changed tax incentives in May and July in an effort to better control steel production."This matters [as it] removes the incentive to run steel mills for exports," said the strategists. Moves that could revive iron ore prices include renewed stimulus measures in China and steel restocking ahead of the winter Olympics, which could prompt further mill closures to contain emissions, said BofA. Keller at Stockcharts.com said the price of copper this week tested the 200-day moving average of $4 per pound, the first such test since June 2020. "That whole idea of the infrastructure trade - industrials and machinery names -- is really coming off here. While I see that as a long-term play, certainly in the short term weakness in copper is agreeing that it's not an ideal time to make that bet," Keller said.

Copper and iron ore prices are collapsing on growth worries and Chinese steel curbs after soaring on hopes of a swift economic recovery

New Delhi, The <keyword id="1259130" type="PERSON" weightage="20" keywordseo="production-cost">production cost</keyword> of India's steel producers using the blast furnace route would remain contained in the near term due to China's ban on <keyword id="10497991" type="UNKNOWN" weightage="20" keywordseo="australian-coking-coal">Australian coking coal</keyword>, India Ratings and Research (<keyword id="1704466" type="COMPANY" weightage="20" keywordseo="Ind-Ra">Ind-Ra</keyword>) said. Accordingly, the <keyword id="10497992" type="UNKNOWN" weightage="20" keywordseo="chinese-move">Chinese move</keyword> will lead to softer coking coal prices which shall directly support EBITDA per tonne accretion of around Rs 2,600 over FY21 for companies using the blast furnace route. "Such companies are likely to have reduced cost of <keyword id="113521" type="PERSON" weightage="20" keywordseo="steel-production">steel production</keyword> by around ₹1,800 per tonne YoY in 2HFY21, supported by the reduced cost of coking coal per tonne of around ₹7,300," Ind-Ra said in a report. As per Ind-Ra, China's ban has led to negative bias on coking coal prices. It expects Australia premium hard coking coal (HCC) CNF prices would be around $120 per tonne over remaining FY21, except for any weather-related supply disruptions in Australia. "Despite China's healthy steel production growth of 7% YoY in the first 7MFY21, its coking coal imports have significantly reduced by 12% as against an increase of 14% YoY in FY20, reflecting the country's increased reliance on domestic coking coal. "Considering the low coking coal imports by China in 7MFY21 and a possible further reduction amid China's ban on Australian coking coal, an excess supply would build-up unless Australian miners reduce their output considerably. "Hence, Ind-Ra understands coking coal prices would remained soft although other major coking coal importers such as India, Japan and South Korea's production levels have recovered them to pre-covid levels," Ind-Ra added. Lately, China and Australia were the largest coking coal trade partners in the world. China's imports and Australia's exports, respectively, form 40% and 65% of the world's overall coking coal trade. "As Chinese end-users are likely to increase their domestic coal production or import coking coal from countries such as Indonesia, Russia, Canada and the US, Indian buyers would gain more bargaining power with Australian coking coal. "India and China have been the largest consumers of Australian coking coal, competing with each other and composing 25% and 24% respectively, of Australia's total metallurgical coal exports." SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/top-stocks-to-watch-mrs-bectors-ril-bharti-airtel-vodafone-idea-ilfs-interglobe-aviation-future-group-deepak-nitrite-jubilant-foodworks-and-others/articleshow/79933826.cms">Top stocks to watch – Mrs Bectors, RIL, Bharti Airtel, Vodafone Idea, IL&amp;FS, InterGlobe Aviation, Future Group, Deepak Nitrite, Jubilant FoodWorks, and others</a> <a href="https://www.businessinsider.in/stock-market/news/there-are-one-of-only-17-indian-companies-out-of-500-that-aced-the-du-pont-test/articleshow/79911627.cms">There are one of only 17 Indian companies out of 500 that aced the Du Pont test</a> <a href="https://www.businessinsider.in/business/corporates/news/wipro-buyback-offer-details-and-700-million-metro-ag-deal-drives-share-price/articleshow/79911875.cms">Wipro offers 10% more to buy back shares and signs a $700 million deal with Metro AG – everything that’s driving the IT services stock higher today</a>

China's ban on Australian coking coal to benefit India's steel producers, says India Ratings and Research

<ul class="summary-list"><li>Chinese electric car maker BYD might be the closest thing to a true Tesla competitor. </li><li>Experts say the auto company's Seal electric sedan is comparable to the <a target="_blank" href="https://www.businessinsider.com/tesla-model-3-vs-model-s">Tesla Model 3</a>.</li></ul>Wall Street analysts tore down a Chinese Tesla competitor and found a great Model 3 alternative — for a fraction of the cost.The Seal, a mid-sized electric sedan made by Chinese EV giant BYD, backed by Warren Buffett's Berkshire Hathaway, is a close rival to the <a target="_blank" href="https://www.businessinsider.com/tesla-models">Tesla</a> Model 3. Analysts at UBS recently investigated to see just how comparable to Elon Musk's popular model it might be.Ultimately, tearing down the Seal — "a good example of Chinese EV models' technological edges and cost optimization" — reinforced the bank's belief that Chinese auto companies are here to stay and dominate the <a target="_blank" href="https://www.businessinsider.com/chinese-car-companies-europe-expansion-threatens-mercedes-volkswagen-2023-9">global electric car market</a>, it said in a note to clients.<div type="image" title="The Tesla Model 3." height="1875" width="2500" msid="103614736" hostid="261"></div><h2>BYD Seal versus Tesla Model 3</h2>The Seal rivals the Model 3 in many ways, according to UBS, and it does so at a "10-20% lower selling price."Analysts noted features such as its larger interior space, 5G connectivity, and rotational central cockpit screen, as well as how it "opts for slower acceleration, lower top speed, slower charging speed" as some of its advantages over Musk's popular car.They also noted BYD's battery technology (coined cell-to-body), allows for more in-vehicle legroom, a unique car shape, improved performance, and — given the tech introduces a more efficient way of integrating the battery — lower manufacturing costs."The floor carpet of the passenger cabin is directly above the battery cell stack, and the top cover of the battery pack serves as the floor of the car body, eliminating one more layer of aluminum or steel," UBS analysts noted. "Such a thin battery pack occupies less floor space than others, allowing the car's profile to be low, which reduces aerodynamic resistance and creates a more spacious interior for drivers and passengers."UBS also said that, when comparing power performance, cost efficiency, and energy density, the BYD Seal's electric system "is in-line with the competition despite being at the relatively lower end of the range, especially compared to the leading solution provided by Tesla's Model 3."Interestingly, unlike Tesla, BYD seems to be steering clear from autonomous driving technology, and instead, is opting for a standard, Level 2, advanced driver assistance system. The company is also outsourcing this tech instead of developing it in-house.<div type="image" title="The XPeng G6 electric SUV." height="4000" width="6000" msid="103614739" hostid="261"></div><h2>Other automakers should worry</h2>At a high level, UBS analysts said the BYD Seal is "cost competitive, thanks to its vertical integration, suitable specs, and volume scale."That's exactly what a lot of the <a target="_blank" href="https://www.businessinsider.com/china-auto-sales-tech-features-leaving-american-automakers-behind-2023-7">Chinese carmakers</a> have going for them. BYD and other Chinese firms like Geely, Li Auto, and XPeng are tech-savvy, have longstanding advantages in terms of the EV <a target="_blank" href="https://www.businessinsider.com/china-united-states-electric-vehicle-market-share-auto-brands-pricing-2023-1">battery supply chain</a>, and easily churn out EVs with greater scale at <a target="_blank" href="https://www.businessinsider.com/cheap-chinese-electric-cars-will-upend-the-us-vehicle-market-2023-5">lower costs</a>.UBS analysts did note that incumbent automakers, like BYD, have an advantage over the younger Chinese companies, but that all are progressing.That growth is not only in China (where Chinese auto firms are expected to outpace foreign companies this year for the first time), but in Europe, too. China is exporting autos at a rapid pace, and Chinese companies dominated conversations at the recent Munich auto show, historically heavily influenced by German carmakers."Heading into the EV era, there is essentially little price gap between foreign and Chinese brands, and the volume could even be higher on Chinese side," the UBS analysts wrote in their note. "Given the Chinese EV development cycle is still faster than that of the foreign brands, we believe Chinese brands' market share gains from foreign brands will be structural and continuous."And experts suggest it's not unlikely they'll find success in the US in the near future, too."Chinese carmakers currently have systematic EV cost advantages versus US and European incumbents while offering wider product line-ups than Tesla and covering more segments (especially mass market)," they added.

You Searched For "Chinese steel exports" and got 12 results

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Indian steel demand boom to continue this fiscal : Crisil

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Firm domestic demand to keep India's steel imports elevated in 2023-24: Crisil

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China's industrial push risks destabilizing the global economy and watering down green-energy exports, Janet Yellen warns

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Jindal Stainless Q2 net profit more than doubles to Rs 764 crore

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Copper and iron ore prices are collapsing on growth worries and Chinese steel curbs after soaring on hopes of a swift economic recovery

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China's ban on Australian coking coal to benefit India's steel producers, says India Ratings and Research

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Wall Street analysts tore down a Chinese Tesla rival and say it's exactly why Elon Musk should be worried about China

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