India most promising market: Nippon Steel

Japan’s top steelmaker Nippon Steel & Sumitomo Metal sees India as the most promising market and wants to become “an insider” to capitalise on growth of the world’s thirdbiggest steel market, a senior executive said.

“India will be the fastest-growing steel market in the world going forward,” Nippon

Steel Executive Vice President Katsuhiro Miyamoto told Reuters in an interview on Thursday.

“But since it’s not an easy market to export to due to trade and distribution issues, it's important for us to become an insider. That’s why we are bidding for Essar Steel,” he said. Nippon Steel has teamed up with Luxembourg-based

ArcelorMittal, the world’s largest steelmaker, to bid around $6 billion for bankrupt Essar Steel, India’s fourthbiggest steelmaker. But the bidding process has been delayed due to legal battles over eligibility for the bidders.

Asked if he thinks the chances are in their favour in the bidding race, Miyamoto said: “We have submitted all the documents requested to the National Company Law Appellate Tribunal and we expect their decision by the end of this month,” he said.

World Steel Association forecast steel demand in India will climb 5.5 per cent in 2018 and 6 per cent in 2019, becoming the fastest-growing market among the world's top ten steel consumption countries. Even so, Japan's steel exports to India nearly halved in 2016 after India imposed duties of up to 20 per cent on some hot-rolled flat steel products in September 2015.

Firm has submitted all the documents regarding its bid for bankrupt Essar Steel to NCLAT, and expects a decision by the end of this month