Chinese steel exports may be affected, ArcelorMittal plans to build the world’s largest steel plant in India

Based on our understanding, supported by strong steel demand in India, some companies have closed their HX380LAD+ZA steel mills in Europe in recent years and instead invested in building factories in India. Recently, some steel companies are planning to build the world's largest individual steel plant in India, including ArcelorMittal.

In January 2024, ArcelorMittal Chairman Keshmimital announced plans to build the world's largest single steel plant in Hajira, Gujarat, western India. The first phase is planned to be completed in 2026, and after signing a memorandum of understanding with the Gujarat government, it was announced that the second phase will be completed in 2029. He stated that after completion, the annual steel production of the steel plant will reach 24 million tons, making it the world's largest HX380LAD+ZA steel plant

We have two opinions about this news. Local Indian traders believe that although Indonesia's steel production capacity is rapidly expanding, local demand in India is also increasing rapidly. In recent years, India's steel demand has increased by at least 5-6 million tons, so they believe that local demand in India can fully absorb India's subsequent expansion of production capacity. But there are also traders from India and Singapore who believe that even though the construction of ArcelorMittasa's factory will not have a significant impact on steel exports from China and Southeast Asia, India's rapidly expanding production capacity will definitely affect China's HX380LAD+ZA steel exports. They believe that the overcapacity in Asia may become more severe in the future, and global steel prices will also fluctuate accordingly.