JSW Steel Says Indian Steelmakers Are in a Sweet Spot

SEATTLE (Scrap Monster): Leading Indian steelmaker JSW Steel said that majority of Indian steel manufacturers are in a sweet spot, despite the headwinds caused by hike in export duty and rising coking coal prices. This view, quite contrary to those of analysts, was shared by Seshagiri Rao, Joint Managing Director and Group Chief Financial Officer of the company during a recent interview.

He noted that the steel sector supercycle mentioned for the past two years is still active. The steel demand will be continued to be driven by increased investments in renewable capacity creations. The increased defence expenditure by world countries following the Russia-Ukraine war will also result in boosted demand. The underlying themes remain strong in support of steel demand.

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Commenting on the government’s recent decision to hike export duty on steel products, Sehagiri Rao said that it is only a temporary phenomenon, aimed at curbing inflation. Once inflation comes under control, the government will revoke the hiked duties, he hoped. He reminded that a similar duty was in effect for a short period in 2008 as well, which was later withdrawn.

The robust demand seen in auto industry is likely to drive additional steel volumes, he added.