Shares of Jindal Steel Ltd surged nearly 3% in Tuesday’s session, trading at ₹1,004, after global brokerage CLSA issued a bullish sector note on metals and mining. The firm highlighted that China is set to reduce its steel capacity by 50 million tonnes in 2025, with an 8.5% production cut target for the remainder of the year.
Despite this, Chinese steel exports have surged to record levels, worsening the demand–supply imbalance seen over the last 18 months. CLSA noted that earlier attempts to curb production had limited impact, but this latest round of cuts is expected to tighten markets and support stronger spreads, ultimately boosting profitability for Indian steelmakers.
Factoring in these dynamics and recent quarterly results, CLSA revised its FY26–28 EBITDA estimates for metals and mining companies under coverage by –4% to +8%. Target prices were also adjusted by –3% to +6%.
The brokerage said it relatively prefers Jindal Steel & Power (JSPL) among peers due to its strong growth outlook supported by capacity additions. It also reiterated a positive stance on aluminium, driven by a tighter global demand–supply balance.
