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Indian steel majors among best-positioned globally: Nomura

The companies will contribute nearly 87% of the ongoing capacity expansion.

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India’s steel industry is poised for substantial growth, with plans to add approximately 23 million tonnes (MT) of crude steel capacity between FY24 and FY27, according to a report by Nomura. The sector is projected to grow at a compound annual growth rate (CAGR) of 4.8%, aligning with the industry’s long-term growth trend from FY15 to FY24.

The report highlights that major steel producers such as JSW, JSPL, Tata Steel, and ArcelorMittal & Nippon Steel will contribute nearly 87% of the ongoing capacity expansion. Specifically, JSW Steel is expected to add 7MT by FY28 at a 5% CAGR, while JSPL is set to add 6.3MT by FY27 at an impressive 18% CAGR.

Despite this significant increase in capacity, the report suggests that supply additions may still fall short of demand growth. Even under a conservative estimate of 6% CAGR in steel demand through FY27 (compared to 7% in the last five years), the domestic supply-demand balance is expected to improve, potentially reducing the need for Indian steel companies to rely on exports for volume growth.

Analysts believe that Indian steel majors are well-positioned in the global metals sector due to their competitive cost structure. Lower labour costs and competitive iron ore prices, even for non-integrated producers; place them at the lower end of the global cost curve.

The future expansion of India’s steel industry is expected to be driven primarily by brownfield projects, with strong domestic demand further supporting growth and reducing the industry’s dependency on exports.

(ET)

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JSW Steel and POSCO to Invest ?650 Billion in Odisha Steel Plant

The new plant will bolster India’s growing steel market,

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India’s JSW Steel and South Korea’s POSCO have announced plans to jointly invest ?650 billion (~$7.73 billion) in constructing a steel plant in Odisha. The plant, which will have an initial capacity of 5 million tons of steel annually, is part of their strategy to tap into India’s rapidly growing steel market, fueled by its fast-paced economic expansion.

The cooperation agreement was signed last week, although specific financial details were not disclosed. The initial investment for the project will be ?200 billion, with the plant expected to be operational by next year. Over the following three years, the plant’s capacity is set to grow to 18 million tons per year, requiring the full $7.73 billion investment.

India’s steel demand has surged in response to infrastructure expansion and rapid economic development, positioning the country as a key market for the steel industry amid declining demand in Europe and the U.S. From April to August, steel demand in India reached its highest level in seven years, driven by the construction of new plants and warehouses for large corporations.

The new facility in Odisha will produce hot-rolled, cold-rolled, and galvanized steel. This venture marks POSCO’s latest attempt to establish a large enterprise in India. A few years ago, POSCO planned a $12 billion investment—the largest foreign direct investment project in India at the time—but the project was shelved due to land acquisition challenges.

Separately, JSW Steel is also pushing forward with decarbonization efforts, planning to invest $1 billion to reduce CO2 emissions and become carbon neutral by 2050. The company aims to cut emissions by 42%, reducing them to 1.95 tons of CO2 per ton of steel by 2030.

In addition, JSW Steel recently announced its acquisition of a 67% stake in Australian coal company M Resources for $120 million, enhancing its coal reserves and supply chain.

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JSW Group and POSCO to Establish Greenfield Steel Plant in Keonjhar

Joint venture aims for 5 MTPA capacity on EV battery materials.

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Odisha Chief Minister Mohan Charan Majhi announced that JSW Group, in collaboration with South Korean steel giant POSCO, will set up a greenfield steel facility in his home district of Keonjhar. This development follows speculation regarding the location of the joint venture.

During his two-day visit to Keonjhar to celebrate Diwali, Majhi disclosed that discussions about the steel plant took place during roadshows for the upcoming Make-in-Odisha conclave held in Delhi and Mumbai. He confirmed that the two companies have signed a Memorandum of Understanding (MoU) to establish the plant, which will be situated in the mineral-rich Keonjhar district.

The MoU was signed on October 29 at JSW Group’s corporate headquarters in Mumbai, with prominent figures such as JSW Group Chairman Sajjan Jindal and POSCO Chairman Chang In-hwa in attendance. The planned integrated steel plant will have an initial capacity of 5 million tonnes per annum (MTPA).

Additionally, the partnership will explore collaborations in battery materials for electric vehicles (EVs) and renewable energy to meet the captive needs of the proposed facility. The Odisha government has earmarked two land parcels in Keonjhar for this purpose: one spanning 2,500 acres near Odisha Tea Plantation Ltd in the Taramakant area under the Banspal block, and another 1,956-acre site in Patna, which was initially offered to steel major ArcelorMittal.

This venture marks a renewed effort by POSCO to establish a presence in Odisha after its earlier attempt to set up a 12 million tonnes steel mill in Paradip was abandoned due to protests and regulatory challenges.

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AM/NS India to Launch Steel Project in Andhra

Major steel project set for Andhra Pradesh

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ArcelorMittal Nippon Steel (AM/NS) India is moving forward with a significant steel project in Andhra Pradesh, entailing an investment of ?1.4 lakh crore. This massive project aims to establish a steel manufacturing capacity of 17.8 million tonnes per annum (MTPA), with operations expected to boost both state and national steel output. The facility will incorporate advanced, sustainable technologies and contribute significantly to India’s target of self-sufficiency in steel production. The venture includes environmental compliance measures and strategic partnerships with local stakeholders to promote economic growth and job creation in the region. The Andhra Pradesh government has welcomed the investment, highlighting its potential to generate thousands of direct and indirect jobs. AM/NS India’s investment underscores its commitment to expanding its footprint in India and aligning with national goals to elevate the country as a global steel production hub. The project’s development is expected to attract further infrastructure investment and strengthen the state’s industrial base.

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