Domestic steel producers brace for profitability boost

12 Oct 2023 CW Team

However, the increase in profitability for steel producers is limited due to a 3-5% decrease in steel prices throughout the quarter. Long steel products have experienced an even sharper decline, dropping by up to 8%. Steel prices began weakening in April, hitting their lowest point in August due to the monsoon season in India and sluggish activity in the Chinese property market. Although prices have risen since then, the average prices for the quarter remained lower than those in the June quarter.

In an earnings preview, Nuvama Institutional Equities noted an anticipated ₹1,661 decline in JSPL's (Jindal Steel and Power) Ebitda/t (earnings before interest, taxes, depreciation, and amortisation per tonne) quarter-on-quarter due to a significant fall in long steel prices and reduced availability of iron ore from its captive mine. Conversely, state-owned Steel Authority of India (SAIL) is expected to achieve strong performance, driven by robust sales growth and lower coking coal costs. Analysts estimate a sequential sales volume growth of around 15% for the company.

While JSW Steel and Tata Steel saw slightly lower production volumes sequentially, they still remained substantially higher than the previous year. In addition to financial and operational metrics, market attention will be on the statements made by steel producers when they report their earnings for the September quarter. Analysts highlight the importance of focusing on domestic demand and inventory, steel prices and spread guidance, as well as updates on capital expenditures and expansion plans, according to a note from CLSA Asia Pacific Markets.

Analysts predict that most domestic steel manufacturers will experience a boost in profitability in the quarter ending September, ranging from Rs 500 to Rs 2,000 per tonne. This improvement is primarily attributed to the decreased cost of a crucial raw material—coking coal—which has fallen by $45-$60 per tonne from the previous quarter. Although steel prices have declined during this seasonally weak period, companies are utilising their lower-priced inventory to mitigate costs.However, the increase in profitability for steel producers is limited due to a 3-5% decrease in steel prices throughout the quarter. Long steel products have experienced an even sharper decline, dropping by up to 8%. Steel prices began weakening in April, hitting their lowest point in August due to the monsoon season in India and sluggish activity in the Chinese property market. Although prices have risen since then, the average prices for the quarter remained lower than those in the June quarter.In an earnings preview, Nuvama Institutional Equities noted an anticipated ₹1,661 decline in JSPL's (Jindal Steel and Power) Ebitda/t (earnings before interest, taxes, depreciation, and amortisation per tonne) quarter-on-quarter due to a significant fall in long steel prices and reduced availability of iron ore from its captive mine. Conversely, state-owned Steel Authority of India (SAIL) is expected to achieve strong performance, driven by robust sales growth and lower coking coal costs. Analysts estimate a sequential sales volume growth of around 15% for the company.While JSW Steel and Tata Steel saw slightly lower production volumes sequentially, they still remained substantially higher than the previous year. In addition to financial and operational metrics, market attention will be on the statements made by steel producers when they report their earnings for the September quarter. Analysts highlight the importance of focusing on domestic demand and inventory, steel prices and spread guidance, as well as updates on capital expenditures and expansion plans, according to a note from CLSA Asia Pacific Markets.

Infrastructure Transport

07 Apr 2026

Large Format Store Planned At M G Road Metro Station

M G Road station in Bengaluru is set to host the city’s first large-format commercial and experience space, with planning led by Bangalore Metro Rail Corporation Limited. BMRCL has invited proposals to develop and operate a central business district destination at the Purple?Pink Line interchange. The plan positions the station as a commercial hub designed to serve a broad commuter base across the city. The proposal is part of a broader effort to activate transit nodes commercially. Tender documents set a minimum monthly rental of Rs 0.944 million (mn), inclusive of GST, for the large-format..

Infrastructure Energy

07 Apr 2026

Government Cancels Auction Of Eleven Critical Mineral Blocks

The government has cancelled the auction of 11 critical and strategic mineral blocks after receiving a poor investor response and failing to attract a sufficient number of qualified bidders. The decision represents a setback to plans to ramp up domestic exploration and production of critical minerals amid global supply chain disruptions and rising demand for materials used in clean energy and advanced technologies. The mines ministry issued an annulment notice setting out the reasons for the cancellations. The annulment notice indicated that the auction process for five mineral blocks was canc..

Infrastructure Energy

07 Apr 2026

Gujarat Pushes Biogas Growth With 193 Operational Units

Gujarat has operationalised 193 biogas plants across the state and is planning to add 60 more units as part of a broader push to scale up clean and sustainable energy solutions. The existing plants, established under various government-supported schemes, process organic waste including cattle dung and agricultural residue to produce biogas and a nutrient-rich slurry. The output is mainly used for cooking and other energy needs in rural and semi-urban communities, while also improving local waste management practices. The Gujarat Energy Development Agency (GEDA) is leading the initiative and is..