Editorial August 2017

Dear Readers,

Metals industry continues to have challenging times in most parts on a global level. Eurozone continues to be stagnated, Middle East region showed a little forward movement when oil prices started moving up but now with oil prices steady at a lower level than expected, the industry and the economy in ME region seems to be halted. South East Asian countries are again witnessing a tough time. Their economies have great influence of their Chinese counterpart and now they are exposed to a dynamically changing policy situation. As we all know, now for last so many years, the key player in metals sector is China. In global steel industry, material availability, pricing and other parameters are being greatly influenced (if not decided) by Chinese industry. In this global fluid situation, India seems to be better poised to attract investor’s attention because of its steady economic growth.

Indian metals sector has also gone through a very challenging time for the last few years. They have seen shortage of vital inputs like ore, coal etc, closure of mining activity by the supreme court orders, continues demand stagnation etc. But now the situation is changing, though slowly but definitely. The demand seems to have started climbing up. This may be due to forward movement of mega infra projects in the country. This will boost construction activity and in turn help the products like aluminium extrusions, wires etc. Also, better road condition is facilitating auto industry growth which in turn helps castings demand to grow. Fortunately this year monsoon is quite satisfactory in most of the regions in the country. This will have a direct, positive and immediate impact on agro equipments sector, tractor sale etc. Further, good crops will increase the purchasing power of the common man whereby helping the economic wheel to move faster. This will obviously help the metals sector to grow. It is expected that the introduction of GST will bring many business transactions in the mainstream economy and will support the growth of GDP.

Overall, I feel the metals sector will make some lost ground in coming months and as such the fiscal 2018-19 will be a better one than 2017-18.

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