JPMorgan notes a slowdown in India’s coking coal imports and domestic production growth during H1FY25, citing factors such as steel production disruptions, inventory corrections, election-related slowdowns, and the monsoon impact.
India has shifted towards importing a significant share of lower-priced coking coal from Russia, which has provided some cost relief. While Indian steel prices seem to have stabilized, the brokerage believes a meaningful recovery is unlikely in the near term.
JPMorgan favors JSW Steel and Tata Steel for their robust positioning and growth strategies, while suggesting steelmakers focus on diversifying suppliers to optimize coking coal costs.
Disclaimer: This report is for informational purposes only and should not be considered investment advice. Please consult a financial advisor before making investment decisions.
