Since last few years, 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 like India, China, the Middle East, SE Asian countries, some CIS countries, part of Russia etc. where infrastructural development is at the forefront of the agenda.

The other steel consuming sectors like the auto industry, the white goods sector etc. also view Asia as the fastest growing market, thus further strengthening steel demand. All this makes Asia the most favoured destination for not only steel makers but for all the allied sectors like technology providers, equipment manufacturers, raw material suppliers etc.

Today, China is the undisputed leader of global steel sector, producing more than 400 million tonnes per year and consuming even more than that. Thus it is the trigger of the global steel trade and any change in Chinese industry perspective will have a major impact on international iron & steel trade. The steel prices, which were at a higher level throughout the year 2004, started sliding down in the second quarter of 2005.

This year has been a remarkable one for the steel industry. The prices have climbed so much that many analysts have started predicting its negative impact on the demand. On the other hand, many mills in the Indian sub-continent and the Gulf region have embarked upon huge capacity expansion programmes. Many Greenfield as well as brown field expansions are planned in next few years in Asian region.

As such, iron & steel industry in this region generally seems to be poised for a healthy growth for the coming years.