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Steelmakers’ Profits to Decline Amid Rising Imports and Price Burdens

JSW Steel has already reduced its capital expenditure for the year.

Published

9 months ago

January 16, 2025

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Profits for most steelmakers are expected to decline for the third consecutive quarter, despite an increase in domestic steel consumption, according to analysts. The December quarter, typically a strong period for steel producers, has been impacted by an influx of cheaper steel imports, which have put downward pressure on domestic prices and profitability.
Finished steel imports into India have reached a six-year high, with over 7 million tonnes imported between April and December 2024. Average steel prices dropped 15% year-on-year and over 5% quarter-on-quarter in the October-December period, with flat steel prices continuing to decline while long steel products saw some recovery.
Steelmakers with a higher proportion of long steel products, like Jindal Steel and Power (JSPL) and Steel Authority of India (SAIL), are expected to fare better than those with a higher share of flat steel, such as JSW Steel and Tata Steel. Nuvama Institutional Equities noted that JSPL and SAIL may post higher EBITDA per tonne, while JSW and Tata Steel are likely to see profitability declines.
In addition to the price variations between flat and long steel, raw material prices have moved in opposing directions. Coking coal prices have fallen, while iron ore prices have increased. Companies with captive iron ore mines are expected to benefit from this price shift.
While India’s steel consumption grew 12% year-on-year to nearly 100 million tonnes between April and November 2024, weak demand in China and increased exports from India have negatively impacted earnings.
JSW Steel, India’s largest steel producer, has already reduced its capital expenditure for the year, and other companies may follow suit if steel prices remain subdued. Analysts suggest that Chinese stimulus, US tariff actions, and decisions on safeguard duties will be key factors influencing steel prices moving forward.
(ET)

Related Topics:imports Steel steelmakers

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Shyam Metalics Unveils Rs 100 billion Capex Plan Under Vision 2031

Company targets Rs 400 billion topline by 2031 with 2.5x revenue growth

Published

3 days ago

October 23, 2025

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Shyam Metalics and Energy Limited (SMEL) has announced its Vision 2031, outlining a Rs 100 billion capital expenditure plan to expand capacity and achieve a topline of Rs 400 billion by 2031—a 2.5x revenue growth from current levels.

The company plans to enhance its integrated operations by focusing on high value-added and downstream products, including specialty steel, stainless steel, flat products, and aluminium. It also aims to strengthen its presence across key sectors such as defence, railways, engineering, and infrastructure.

SMEL will leverage brownfield expansions in West Bengal, Odisha, and Madhya Pradesh to optimise capital efficiency and minimise execution risk. The Vision 2031 roadmap underscores the company’s commitment to sustainable, value-driven, and capital-efficient growth across the metals sector.

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Tata Steel, Air Water India Ink 20-Year Deal for Jamshedpur ASU

Partnership to operate 1,800-tonne daily oxygen unit enhances steel efficiency

Published

3 days ago

October 23, 2025

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Tata Steel has signed a 20-year agreement with Air Water India Private Limited (AWIPL) to operate and maintain its advanced Air Separation Unit (ASU) in Jamshedpur. The partnership aims to boost Tata Steel’s industrial gas infrastructure and improve efficiency through the use of cutting-edge cryogenic technologies.

The agreement was signed between Peeyush Gupta, Vice President (TQM, GSP & SC), Tata Steel, and Kausik Mukhopadhyay, Managing Director, AWIPL. Under the contract, AWIPL will manage operations of the ASU, which can produce 1,800 tonnes of oxygen per day, along with nitrogen, argon, and dry compressed air. These gases are critical to Tata Steel’s blast furnaces and steel melting operations.

The ASU is currently in the stabilisation phase and will be officially handed over to AWIPL next month. The collaboration leverages AWIPL’s global expertise in cryogenic operations, particularly from its facilities in Japan, ensuring world-class maintenance and reliability.

The initiative underscores Tata Steel’s focus on integrating sustainable and efficient technologies across its facilities, aligning with its long-term commitment to responsible steelmaking and operational excellence.

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Jindal Stainless to double slag processing with new USD 150 mn wet milling plant

New Odisha facility to boost circular production, recover metals, and create 140 jobs.

Published

4 days ago

October 22, 2025

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In a major step toward circular manufacturing, Jindal Stainless, India’s largest stainless steel producer, is set to double its slag processing capacity with a new wet milling plant at its Jajpur facility in Odisha. The initiative supports the company’s circularity goals by recovering metal from industrial waste and conserving natural resources while creating about 140 new jobs in the region.

The company has partnered with Harsco Environmental, a global leader in sustainable metal industry solutions, to build and operate the facility under a 15-year partnership worth USD 150 million. This new collaboration strengthens the decade-long association between the two companies and will enable the Jajpur unit to become India’s first site with two wet milling plants.

Commenting on the development, Abhyuday Jindal, Managing Director, Jindal Stainless, said, “As we expand capacity to meet rising stainless steel demand, our focus remains on doing so responsibly and sustainably. The new wet milling plant, with benchmark metal recovery and waste management systems, will enhance slag utilisation and create new opportunities for local communities.”

Manjunath Raghavelu, Managing Director – India & MEA, Harsco Environmental, added, “This partnership marks an important milestone in advancing the circular economy. Together, we will strengthen our focus on sustainability and efficient slag utilisation at Jajpur.”

The project forms a key part of Jindal Stainless’ long-term ESG strategy and its commitment to achieve Net Zero by 2050. In FY25, the company reduced its carbon footprint by around 14 per cent through decarbonisation measures, including India’s first green hydrogen plant for stainless steel production and the country’s largest captive solar power installation at a single industrial campus in Odisha.