In a further step towards better symbiotic relations, the world’s largest consumer and producer of steel – India and China – came together to sign a steel pact to improve both the production and consumption systems within the steel industry.
India exports a majority of her iron ore exports to China, which has the technological know-how, expertise and machinery to produce steel, a commodity which is then re-exported to satiate India’s large infrastructure increment. As China’s steel demand falls, her machinery and technical expertise are being put to better use by India whose demand for steel from China is rising. Recongnising this symbiotic relationship in its bud, Steel Authority of India Ltd (Sail) Chairman C S Verma and China Iron and Steel Association (CISA) Chairman Zhu Jimin signed a pact in Beijing to establish frequent dialogue among steel industries of both the countries.
It’s almost as if one will not function without the other, and sustaining each other at times when global steel production has fallen has become crucial for both developing nations. China needs her machines to keep working and India needs a better steel supply.
“India is expected to resume its high growth trend. In 2012, India’s steel use is forecast to grow by 6.9 per cent to reach 72. 5 million tonnes.
“In 2013, the growth rate is forecast to accelerate to 9.4 per cent on the back of urbanisation and surging infrastructure investment,” the WSA report said.
The move is expected to open new corridors for India in China and help address areas such as technology transfer, joint venture, training for developing expertise in design engineering, operations, construction and research & development. It’s also supposed to help China strengthen co- operation in steel raw materials as well as Metallurgical technology equipment cooperation, share information on steel statistics and regularly communicate on steel product trade.
The Chinese side was represented by steel companies such as Bao Steel, Wuhan Steel, Government of PR China-MIIT and steel equipment manufacturers, while the Indian contingent comprised Ministry of Steel, senior officials of SAIL, Tata Steel, JSW, Essar & JSPL.