Indian steel industry is still operating at 90% capacity utilization, compared to global steel majors, who operate at around 50% capacities with piling inventories. Though there is 5% anti-dumping duty on imported steel, Indian steel companies have reduced the steel prices at par with global prices to remain competitive with cheaper China imports, the margins have come down. Global steel demand is likely to come down by 12% this year and 16% for 2010. Indian companies may survive this through low employee costs
With many governments announcing stimulus package to revive industries, base metals are expected to go up. US $ 900 billion package and Chinese 535 million $ package is expected to pep up the demand for industrial commodities. As a result, it is expected that demand for copper will go up from US and China. It is expected that other base metals aluminium and nickel will also go up.