| India’s steel industry
We’ve seen the trends in the steel markets in China and Europe in our previous parts. Now we’ll analyze the steel production data for India, the fourth largest global steel consumer. The Wisdom Tree India Earnings ETF (EPI) can give you exposure to Indian equity markets.
Steel production in India
Steel production in India increased 4.8% in August, as shown in the above chart. Compared to 2013, steel production in India is up by 2.4% as of November this year. There are several factors that drive steel demand in India.
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Infrastructure spending. India is lacking in basic infrastructure amenities. The government has announced its intent to improve this. Projects the new government has planned include high-speed railways linking major cities, highway construction, and housing for all citizens.
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Rising disposable incomes. The current GDP (or gross domestic product) per capita in India is only $5,148, which is less than half of China’s. While we’re not suggesting that this number is converging anytime soon, India has been on a rising trajectory. Rising income increases the demand for automobiles and other appliances, which increases the demand for steel.
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Urbanization. With rising incomes and better job opportunities, people are moving to the cities. This increases housing demand and leads to higher steel consumption.
After the splendid growth in China, global steel companies are expecting India to be the next big thing in the steel industry. Rising steel consumption in India is expected to drive the global steel demand in the future.
彈簧展-2015第十六屆廣州國際彈簧工業(yè)展覽會(huì)-全球最大彈簧展會(huì)-巨浪展覽-The 16th China(Guangzhou)Int’l
Spring Industry Exhibition
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