'Oversupply is temporary, a growing India will absorb it'

India’s rapid urbanization, infra push will drive steady growth in steel use: JSW Steel CEO

- Dipali Banka, Nehal Chaliawala & Abhishek Law

Steel capacity doesn't grow evenly every year; it comes in big chunks, says JSW Steel's joint managing director and chief executive officer Jayant Acharya

India’s largest steelmaker JSW Steel Ltd expects the oversupply in India to be short-lived, with the longterm demand set to stay strong, joint managing director and chief executive officer (CEO) Jayant Acharya told Mint in an interview. He said the temporary supply-demand mismatch, caused by several large capacity additions coming online at once, will be absorbed as the country’s rapid urbanization, infrastructure push and rising consumption drive steady growth in steel use in the coming years.

Domestic steel prices are currently under pressure despite safeguard duties on imports, underscoring the industry's tightrope between shorttermsurplusand long-term expansion.

Acharya’s outlook suggests bullishness on India’s growth-led demand cycle even as the global market grapples with cheap importsand trade protection measures.

“Lam not at all worried about the capacity. Yes, capacities are lumpy; so when they comeinafewmonths' gap, you may see a little bit of supply exceeding demand, which always thenevens out," said Acharya, adding, “But Ido not see any reason for concernat all.”