Because the current slowdown in economic growth over the past six years has led to lower demand in India and a significant decrease in margins, JSW Steel, India’s largest producer of complex steel, is expected to exceed its target exports by fiscal year 2019 by more than 2.2 million tons to 2.4 million tons.
JSW Steel said that current stocks clearly showed a drop in demand in India over the past two months, and it is likely that growth will be slower - up to 7% compared with the previous estimate of 6.5%.
If demand had not improved in the second half of 2019, leading steel producers could consider adjusting production by reducing or moderate production capacities, as most Indian steel producers, especially sponge iron producers, pellet producers and secondary steel producers, have done so.
