Impact on Indian Iron and Steel Industry minimal
Donald John Trump surprise victory in the US presidential election, as he will become the 45th president of the United States, capping a historic run by an outsider who captured a loyal following across America.
There was Speculation of surge in metals demand from the United States from greater infrastructure spending after Donald Trump won the presidential election, but some analysts cautioned the rally, as the market was driven more by sentiment than business fundamentals, adding volatile trading will likely to continue.
Iron ore rose 4% on Wednesday to US$71 a ton to the highest in almost two years on speculation of much higher future US spending on roads and bridges, while steel smelting ingredient coking coal topped US$300 a ton this week for the first time since 2011.
Trump’s infrastructure plan may have only a modest impact on the global steel market as the U.S. only represents 7% of worldwide demand and the nation’s steel per capita consumption is only half of China’s, according to reports.
“The clearest message delivered by Donald Trump in his election victory speech was a focus on greater infrastructure spending in the U.S.,” the analysts wrote in the report. “Without specific details it is hard to quantify the impact on commodity demand; however such policies would support steel, iron ore, zinc, nickel, diesel and cement.”
Expected outcome for India
Trump has a 15-point agenda – Of which If he decides to implement them, it could impact India in several ways, but as per reports there is a least chance to affect the coal and iron ore industries, because his policies will support these industries which will act as an impetus for Indian industry. The Energy Plan would benefit India and Trump has promised to open America’s oil, natural gas and coal reserves to make U.S energy self-sufficient. Once elected president, he has also promised to open onshore and offshore leasing on federal lands and lift the moratorium on coal leasing.
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