Indian steel producer Essar Steel will no longer offer their products on European markets. About it reports Argus citing its sources.
the Decision was made after 16 December, the manufacturer was acquired by the Luxembourg-based ArcelorMittal and the Japanese producer Nippon Steel. After completion of the transaction, the Indian company was renamed ArcelorMittal Nippon Steel India.
market Participants said that this is to be expected, given the company's position in the European markets.
ArcelorMittal declined to comment. The company Lakshmi Mittal operates several factories throughout Europe and in the last few years has been in fierce competition with imported sheet steel.
the Decision may lead to the reduction of steel imports into Europe from India by at least 30 thousand tons of hot rolled coil per month, which were previously supplied to Essar Steel.
which will be redirected exports of Indian companies is still unknown, but Vietnam and Turkey are potential new markets, as both countries import volumes from India. Given the expected growth in domestic demand in India, the goods can also be supplied to the local market, especially given the fact that prices are rising, having increased this month to us $ 56-70. USA / ton, compared with the previous month.
Essar Steel manufactures a wide range of flat rolled steel including hot rolled, cold rolled, galvanized and coated sheet products and pipes.
Import European hot rolled and cold rolled steel in the EU decreased from January to November 2019, according to data of the European Association of steel industries Eurofer, however, India remains one of the key suppliers of flat steel in the block.