Shares of KIOCL Ltd surged more than 8% on Tuesday, hitting ₹456.90, after optimism spread across the metals sector on the back of global supply adjustments.
The rally comes amid reports that Chinese government agencies have unveiled a fresh plan to stabilize the steel industry for 2025–2026. According to SteelOrbis, the roadmap includes reducing overall steel production, closing outdated capacities, tightening regulatory controls, and supporting high-tech production.
Market estimates now peg China’s 2025 steel output at less than 980 million tonnes, at least 25 million tonnes lower than 2024’s 1.005 billion tonnes. In January–July 2025 alone, production dropped 3.1% year-on-year to 594.47 million tonnes, reflecting a fall of 19 million tonnes compared to the prior year.
For Indian players like KIOCL, these developments signal tighter global supply and firmer spreads, boosting investor confidence. The stock’s sharp move also mirrors broader strength in metals after similar gains in Jindal Steel and other steel-linked counters.
Representatives of Chinese factories noted that while the decline pace has slowed, government-backed “categorised management” of plants and emphasis on efficiency and environmental standards are expected to reshape industry dynamics.
As a result, analysts see Indian iron ore and pellet exporters like KIOCL well-positioned to benefit from stabilizing prices and improving spreads in global trade.
