Shares of JSW Steel Ltd surged 1.89% to ₹1,030.25 on March 10, 2025, following strong production growth and bullish market sentiment in the metal sector. The stock hit a four-month high of ₹1,022 in early trade, driven by impressive crude steel output and increasing capacity utilization.
Key Highlights from JSW Steel’s Production Update:
- Consolidated crude steel production in February 2025: 24.07 lakh tonnes, marking a 12% YoY growth.
- India’s domestic steel production: 23.32 lakh tonnes, up 13% YoY.
- Capacity utilization in India: 93.5%, indicating strong operational efficiency.
JSW Steel’s Expansion Plans:
- The company currently has a consolidated crude steel capacity of 35.7 MTPA, including 1.5 MTPA in the US.
- Domestic capacity stands at 32.5 MTPA, expected to rise to 34.2 MTPA upon full commissioning of the JSW Vijayanagar Metallics Ltd. (JVML) expansion project.
- The next phase of growth aims to expand consolidated capacity to 43.5 MTPA over the next three years.
Jefferies remains positive on metal stocks
Global brokerage Jefferies has reiterated its bullish stance on metal stocks, noting that JSW Steel (JSTL), Hindalco (HNDL), and Tata Steel have outperformed the Nifty-50 by 15-20% in 2025 so far. The rally is being driven by:
- Optimism around China’s economic recovery.
- Expectations of a safeguard duty on steel in India, which could further boost margins.
- Rising aluminum prices, supporting earnings for key players.
Jefferies highlighted that Asian steel spreads remain 20% below long-term averages, leaving room for further price expansion. Additionally, Indian steel prices have increased by 5% since December, and the potential introduction of a safeguard duty could further support valuations and improve profitability.
The brokerage maintains buy ratings on Hindalco and Tata Steel, citing strong fundamentals and potential upside in the sector.
With JSW Steel’s Vijayanagar plant being India’s largest single-location steel facility (17.5 MTPA, including under commissioning), the company remains a dominant player in the steel sector.
Disclaimer: The views and investment recommendations in this article are sourced from brokerage reports. Business Upturn does not provide investment advice. Readers should consult financial experts before making any investment decisions.
