Chinese steel imports into India reached an all-time peak of 1‚7 million metric tons in Apr-Oct 2024‚ showing a 35‚5% year-on-year jump (which puts pressure on local manufacturers)
The surge comes as China deals with weak home-market demand; shipping more steel to India due to its fast-growing construction needs. U.S trade barriers - including a 25% steel tariff since may - made India an even more attractive market for Chinese producers
The trade gap between India and China keeps growing reaching $57‚8 billion (up from $51‚1 billion last year). Indian imports from China jumped 10% to $65‚9 billion which might get worse if China faces more U.S restrictions; potentially affecting sectors like:
- machinery
- electronics
- chemicals
In a surprising move Sanjay Malhotra takes over as head of Reserve Bank of India. Markets didnt expect this change as most thought Shaktikanta Das would stay longer - the rupee went down and bond yields dropped after this news. Experts think Malhotra might cut rates faster than his predecessor
Foreign investors pulled $2‚5 billion from Indian stocks in november (much less than octobers $11‚2 billion outflow). However december shows positive signs with $2‚8 billion in purchases - mainly in IT and financial stocks
The steel ministry supports putting special taxes on Chinese imports but hasnt made final decisions yet. This could affect Indias plans to grow its steel-making ability by two-thirds before this decades end
BRICS countries have no interest in weakening the U.S. dollar at all