Steel is the most prevalent alloy in the entire world. The inception of steel brought the dawn of industrialization. India and China dominate the consortium of global steel traders and manufacturers. Steel, the mixture of iron and carbon, is used in the construction of buildings, bridges, tunnels, dams, and the manufacturing of all the vehicles, machinery, appliances, and even weapons. Steel is a low cost allow with excellent tensile strength (The resistance of a material to bend or break under pressure), making it one of the most demanded materials in the world.
Why are steel suppliers in India growing business all over the globe?
India has shown constant growth in the production and export of steel since the last decade. There are more than fifty steel plants in India, and the integrated steel plants have quite the dominance amid the global steel traders. Although more than half the steel plants in India are small to medium scale, their business practices and supply chain structures have made it advantageous for the global steel traders.
The export policies on steel in India enable ease of business all around the globe. The steel industry is free from government control, and it was de-licensed in 1991. Steel is duty-free to export from India, which makes it much cheaper and simple to purchase on a large scale by foreign buyers. SAIL (Steel Authority of India Limited) and TISCO (Tata Iron and Steel Company Limited) are the largest producer and exporter of Steel from India.
Demand and Supply
Due to the unfortunate COVID-19 pandemic, India has risen to fulfil the global demand for steel. The world’s largest manufacturer of steel, China, has fallen short of delivering the requirements of global steel traders and European steel traders. The Indian government has loosened up the policies of doing business with steel suppliers in India, making the Indian export of steel an attractive proposition. The month of June and July 2020 is expected to create higher demands for export from India. The domestic market for steel in India is slow due to the lockdown, but contrarily, the global demand is high. Indian steel giants are ready and exclusively prepared to deliver worldwide at fair pricing.
Pricing and standards
India, being a populated country, is an affordable pricing hub due to the availability of labours at lower rates, thus saving the production cost. The steel giants of India like Vizag Steel (RINL), JSW Steel, TISCO, and SAIL maintain the production rate with international standards of Global steel traders. Countries with exemplary standards such as Italy, UAE, and Belgium are the leading importers of steel from India. The quality and pricing of Steel export from India will be advantageous to global steel suppliers in maintaining the profit margin and sustain business post lockdown.
The integrated steel plants in India, such as Vizag Steel, TISCO, SAIL, and JSW steel are capable of producing different grades of steel in one place. From raw materials to the finished products, the global steel traders will have ease of business, if they choose to import steel from India. The global supply chain through Indian docks is least complicated, which saves time and money for all.