Asia has always been the leader in world steel consumption with around half of the world steel demand generated in Asian markets. The Asian region comprises of developing countries where infrastructural development is on the forefront of the agenda. The other steel consuming sectors like auto, white goods etc, also view Asia as the fastest growing market, thus further strengthening steel demand. Though the region witnessed a setback when economies of some of the South East Asian countries faced currency crisis, most of the lost ground is made up and these countries are again on fast recovery track. All this makes Asia the most favoured destination for not only to steel makers but to all the allied businesses too.

   Today, China is the undisputed leader of global steel sector, producing around 300 million tones per year and consuming even more than that. Thus it is the trigger of the global steel trade and any change in Chinese perspective will make a substantial impact on international iron & steel trade. The steel prices, which were at a higher level throughout the year 2004, have started sliding down in the second quarter of 2005. Some analysts attribute this to slowing down of Chinese demand. Even European steel mills have taken a cautious approach. Another reason may be piling of stocks in warehouses. Whether the slide is a temparory correction factor or a long term phenomenon is yet to be clear.