JSPL Highlighted India as a Bright Spot for Steel Supply and Demand

SEATTLE (Scrap Monster): The leading Indian steelmaker, Jindal Steel and Power Limited (JSPL) said that India continues to remain as a bright spot for supply and consumption of steel, amidst volatility across the globe.

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According to Bimlendra Jha, Managing Director, JSPL, the steel production in the country is expected to touch 121 million tonnes (mt) in 2022, rising steadily from 106 mt in 2020 and 113 mt in 2021. India will contribute 8 mt of the global steel production growth of 18 mt projected in 2022. The country’s steel market is seen entering a positive territory of demand. However, the widespread domestic capacity reductions may result in boosted steel imports into the country.

The steel industry in the Europe region has been badly impacted by spiralling energy crisis. The inflationary risks are likely to further drag the already volatile global steel market, Jha added.

JSPL noted that 15% export duty on steel has made domestic realisations and margins are better than export markets. The strong domestic demand and price stability for many of its steel products have helped the company overcome the lull in export market. It must be noted that JSPL’s export volumes had dropped to 11% of total sales in second quarter of FY23, as compared with 26% in Q1.