From January 1, 2023, China will raise import and export duties on some commodities to balance domestic demand and supply as well as upgrade its domestic industries. China will also be increasing export tariffs on aluminum and aluminum alloys.
As the world’s leading steel producer and consumer, China and its market have an outsized impact on steel prices around the world. The country’s relaxed COVID-19 restrictions have contributed to optimism in the industry that steel demand and prices could see a substantial increase in 2023.
“There has been a resurgence of US manufacturers looking outside of China for its engineering components needs. Some are finding a home in North America and some elsewhere, including in India. India is home to the largest English speaking workforce who can replace China to a great extent.” said Lalit Goel, CEO of Aerostar Manufacturing.
The World Steel Association shared its most recent Short Range Outlook in October 2022. The forecast anticipates a 1% increase in demand and a cautious outlook as the global economy remains volatile due to inflation, war, and COVID-19.
“Aerostar is supplying engineering components to a vast array of OEM and tier 1 manufacturers from its facilities in the USA and India. Many of these parts go into engines and transmissions of cars, trucks, off highway vehicles, boats and power generators. Aerostar is also seeing opportunities to supply engineered components for EV, Telecommunications (5G), Farming, Data Center and Industrial industries.” Goel added.
WalletInvestor predicts that steel prices will increase 31% over the next year. The varying forecasts and outlooks all point to the volatility of the steel industry and global economy as a whole.
“The advantage of manufacturing engineering components in India is many folds – Scale, Skill and Savings. India has a vast manufacturing base with a highly skilled engineering workforce, saving our customers an average of 25% vs North America.” said Goel.
Advantages of Aerostar’s established network in India and offerings to its North American current customer base:
- Large Manufacturing Infrastructure
- Highly skilled & Technical Workforce
- English as the main business language
- Substantial Labor cost advantage (average 25% in savings)
- Ready availability of skilled workforce
- Open Capacity