INTERVIEW JAMES FORBES, GLOBAL METALS LEADER, PRICEWATERHOUSECOOPERS 'India to attract more global steel players'

摘要

The growing dem and for steel in India has not only put pressure on companies to source raw material assets but has also seen foreign players entering India to capture the growing market. James Forbes, Global Metals Leader, Pricewater house Coopers, told FE's Snrita Joshi Sana he sees more global majors coming to India through part-nerships with Indian steel companies. Has there been adequate investment in the mining space given the financial crisis? Most of the deals that happened last year were for raw material acquisition. Valuationshavecomedownas many steel firms don't have cash and so there isn't too much competition for such assets like there was in 2008. Well, 2010 is still a difficult year to pick. I think in January and December, we saw the world steel production drop for the first two consecutive months and with that there will obvi-ously a lower dem and for raw materials. So I think we'll still see some more activity We also have to see how iron ore prices pan out and how the BHP-Rio Tin to deal shapes up. Steel associations, across the world, are concerned about this dealas it will polarise the market and one player will have additional control over the pricing on one of the key raw materials.