"Despite an uptick in demand from the infrastructure sector, soft demand from property and manufacturing industries will limit growth in steel demand in China, while demand in Korea and Japan will remain largely
flat," Kaustubh Chaubal, vice president and senior credit officer and co-author of the report was quoted as saying.
India's steel demand will remain the strongest in Asia but slow to mid-single-digit growth, as weak auto and manufacturing demand offsets demand growth in the infrastructure and construction industries, said
Meanwhile, limited new capacity additions across the region will curb a sharp decline in steel prices, with production up only in India, where demand is still growing, and flat in China, Korea and Japan.
Finally, Moody's expects the increase in US tariffs on steel imports will have a limited direct impact on Asian steel companies because of their modest US sales. The worsening Japan-Korea relations will also not have a material impact on both, Korean and Japanese steel makers.