Morgan Stanley expects green shoots of recovery in the steel sector in 2025, driven by inventory de-stocking, improving demand, and normalized imports. The pace of China’s economic recovery remains a critical factor influencing global steel markets. The brokerage highlights a cautiously optimistic outlook for Indian steelmakers, with specific recommendations for investors.
Morgan Stanley maintains an Overweight rating on JSPL (TP ₹1,200) and JSW Steel (TP ₹1,150), reflecting strong fundamentals and growth prospects. Tata Steel is rated Equal-Weight (TP ₹160), while SAIL remains Underweight (TP ₹115) due to valuation concerns. The brokerage underscores that sustained demand recovery and pricing power will be critical for the sector’s performance, as Indian steelmakers navigate through global macroeconomic uncertainties and domestic infrastructure growth.
