The dynamics of the global metallurgy is influenced by structural changes in China

Cyrus Mistry, chairman of the Tata Steel group, says supply and demand are shifting in the global steel industry due to structural changes in China, the world's largest steel producer. At the same time, the steel sector expects a lower level of prices for raw materials.

This year, China has focused on achieving a sustainable model of economic development, deviating from growth, which will affect the price dynamics and demand for steel products around the world. Above all, changes in the growth trajectory will affect the US and Europe, as well as commodity markets, according to the chairman of Tata.

China produces over 700 million tonnes of steel, most of which is used to develop domestic infrastructure. The nation produces about half of the world's supply and exports some of the steel it produces at competitive prices, putting pressure on steel producers around the world.

China is also the main consumer of iron ore, and this also affects the price of raw materials. Mistry added that the weakness of the global steel industry continues to threaten over the medium term, even with weak macroeconomic recovery trends in 2013 in the US and European economies.

In this environment, the company plans to focus on differentiation and economic competitiveness in the European market through its foreign subsidiaries Tata Steel Europe. In India, the company is already planning to begin ramping up capacity at its Kalinganagar steel plant, Odisha. The program will begin at the end of the 2014-15 fiscal year. The expansion of the plant in Jamshedpur also contributes to the increase in production.