Google

Tata Steel, SAIL, JSW Steel, JSPL shares gain up to 5% as China plans steel production cuts

/2 min read

ADVERTISEMENT

The rally in steel stocks was driven by optimism over China’s plan to reduce steel production between 2025 and 2026.  
THIS STORY FEATURES
Jindal Steel & Power Ltd Fortune 500 India 2024
Hindustan Copper Ltd The Next 500 2024
Steel Authority of India Ltd Fortune 500 India 2024
Kalyani Steels Ltd The Next 500 2024
Tata Metaliks Ltd(Merged) Fortune 500 India 2011
JSW Steel Ltd Fortune 500 India 2024
Jindal Stainless Ltd Fortune 500 India 2024
Tata Steel Ltd Fortune 500 India 2024
Tata Steel, SAIL, JSW Steel, JSPL shares gain up to 5% as China plans steel production cuts
Steel stocks rose by up to 5% today Credits: Photograph by Getty Images

Shares of major domestic steel producers, including Tata Steel, SAIL, and JSW Steel, rose by up to 5% on Wednesday, in an otherwise muted broader market. The rally in steel stocks was driven by optimism over China’s plan to reduce steel production between 2025 and 2026.  

According to market analysts, China’s production cut is aimed at tackling global overcapacity, which has kept steel prices under pressure for months. This move is expected to curb the inflow of low-cost steel into India, providing a boost to domestic metal producers.

Cheering the news, shares of Tata Steel, the country’s largest steel manufacturer, rose by as much as 3.7% in the first two hours of trade so far. SAIL , JSW steel , Jindal Steel & Power , NMDC Steel, Tata Metalik , Kalyani Steels , Jindal Stainless , Hindustan Copper shares also rose in the range of 2-5%.

fortune magazine cover
Fortune India Latest Edition is Out Now!
The Year Of EV Launches

September 2025

2025 is shaping up to be the year of electric car sales. In a first, India’s electric vehicles (EV) industry crossed the sales milestone of 100,000 units in FY25, fuelled by a slew of launches by major players, including Tata Motors, M&M, Ashok Leyland, JSW MG Motor, Hyundai, BMW, and Mercedes-Benz. The issue also looks at the challenges ahead for Tata Sons chairman N. Chandrasekaran in his third term, and India’s possible responses to U.S. president Donald Trump’s 50% tariff on Indian goods. Read these compelling stories in the latest issue of Fortune India.

Read Now

According to a recent report by Emkay Global, while India and China’s policies are addressing supply-side constraints, domestic steel demand continues to be muted. Market participants are hoping for a post-monsoon revival starting September, driven by a pick-up in government capex and GST recalibration.

“Interestingly, we are of the firm view that price volatility could reduce with the safeguard duty’s extension for three years, with the price floor being taken care of by policy clarity, and any meaningful upside would be capped by import price parity,” Emkay said in a report dated August 27, 2025.  

Last month, the Directorate General of Trade Remedies (DGTR) issued its final recommendation to impose a safeguard duty on imports of certain flat steel products for three years, aimed at protecting domestic manufacturers. The proposed duty is 12% in the first year, 11.5% in the second, and 11% in the third. This move is expected to partially decouple domestic steel prices from import parity, which is usually linked to China’s steel prices.

Currently, domestic steel trades at a 9% discount to import prices, allowing the duty to curb imports rather than artificially raise domestic prices. This decoupling gives Indian producers more flexibility to set prices based on local supply-demand conditions, reducing reliance on China’s volatile macro trends, according to the Emkay report.


(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)

Fortune India is now on WhatsApp! Get the latest updates from the world of business and economy delivered straight to your phone. Subscribe now.