China the biggest threat for Indian Steel Industry !

It has been a long time since I wrote about my love (Steel) so I decided write on a topic which suits my blog name – “in love with steel”.
Recently when I was going through ET , I saw one news that steel price is going to rise from Rs. 1000- 1500 per tons this forced me to cogitate me that how china is ruling the international market of steel by its outmost production of steel in world.
In 2009, china produced 43.3 MMT of steel which is the maximum production in world, this production has led to demand driven price situation for iron ore since china is able to pay any amount for iron ore for its 43.3 MMT of steel production. Nations which is having iron ore mines are Australia, Brazil, Canada, china and India (Rank wise). In these nations China is at 4th position in production of iron ore with 261 MT but still china is the maximum exporter of iron ore to fulfill its growing production of steel. Leaving china all nations have seen a rise of 15-30 % rise in export of iron ore which is leading to rise in price of iron ore due to excess demand from china.
China is playing a intrepid game with all the other nation which are producing steel and also forced them to increase to price of steel. Since steel is basic building block for a nation development so its price rise is going to affect the all nations, specially the developing country which is trying to move out of box from developing to developed.
India is at 5th largest producer of steel in world with 53 MT and you can see the huge gap between china’s 43.3 MMT and India’s 53 MT almost 10 times. China is producing 37% of total steel production and India is producing only 4%. So what I want to say that China is controlling the steel market with its huge production and all other nation are like poppet dancing on china market.
The rise in iron ore is not only going to raise the cost the steel but it is also going to raise many related industry like automobile, infrastructure, consumer durable etc. It can be clearly seen that how china is governing our overall economy by producing the steel in huge quantity and the main reason for this there is no proper governing body who can decide a proper price for iron ore as in the case of crude oil price which is decided only by OPEC countries and there is not much say from other countries.
In coming days china is going to rule the other nation economy as they are price decider and on steel all industry are heavily dependent , so it is obvious that china is going to affect our economy too.
Ritesh Ranjan