Indian key industries suffer systematic impact from Sino-US trade war
According to a May 17 report by the South China Morning Post, the global supply chain reconfiguration triggered by the Sino-US trade war is increasing pressure on India's local manufacturing industry. Many small and medium-sized textile and steel factories have been forced to reduce production, causing a systematic impact on India's key industries.
In the textile sector, the Southern India Textile Spinning Association (SISA) reported in early May that due to Chinese imported yarn being approximately 15% cheaper than Indian domestic products, at least 50 small spinning mills in southern textile hubs such as Palakkad, Karur, and Tiruppur are likely to see further declines in output.
In the steel sector, the landed price of Chinese hot-rolled coils per ton is $25-$50 (approximately 2100-4200 Indian rupees) lower than India's domestic products. The capacity utilization rate of small and medium-sized steel mills, which account for 41% of India's total capacity, has plummeted by one-third over the past six months, forcing them to scale back operations and consider layoffs. The report cited a research note released by Nomura Securities in April, indicating that the spillover effect of the Sino-US trade war is the root cause of market turbulence in other countries including India.
The report points out that by 2024, China's share of US non-oil commodity imports will drop nearly 10 percentage points to 16%. However, China's share of global exports remains close to its historical high of around 15%, reflecting China's efforts to turn toward emerging markets.
Original article: https://www.toutiao.com/article/1832553345106075/
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