Indian steel majors among best-positioned globally: Nomura
Steel

Indian steel majors among best-positioned globally: Nomura

India's steel industry is poised for substantial growth, with plans to add approximately 23 million tonnes (MT) of crude steel capacity between FY24 and FY27, according to a report by Nomura. The sector is projected to grow at a compound annual growth rate (CAGR) of 4.8%, aligning with the industry’s long-term growth trend from FY15 to FY24.

The report highlights that major steel producers such as JSW, JSPL, Tata Steel, and ArcelorMittal & Nippon Steel will contribute nearly 87% of the ongoing capacity expansion. Specifically, JSW Steel is expected to add 7MT by FY28 at a 5% CAGR, while JSPL is set to add 6.3MT by FY27 at an impressive 18% CAGR.

Despite this significant increase in capacity, the report suggests that supply additions may still fall short of demand growth. Even under a conservative estimate of 6% CAGR in steel demand through FY27 (compared to 7% in the last five years), the domestic supply-demand balance is expected to improve, potentially reducing the need for Indian steel companies to rely on exports for volume growth.

Analysts believe that Indian steel majors are well-positioned in the global metals sector due to their competitive cost structure. Lower labour costs and competitive iron ore prices, even for non-integrated producers; place them at the lower end of the global cost curve.

The future expansion of India’s steel industry is expected to be driven primarily by brownfield projects, with strong domestic demand further supporting growth and reducing the industry’s dependency on exports.

(ET)

India's steel industry is poised for substantial growth, with plans to add approximately 23 million tonnes (MT) of crude steel capacity between FY24 and FY27, according to a report by Nomura. The sector is projected to grow at a compound annual growth rate (CAGR) of 4.8%, aligning with the industry’s long-term growth trend from FY15 to FY24. The report highlights that major steel producers such as JSW, JSPL, Tata Steel, and ArcelorMittal & Nippon Steel will contribute nearly 87% of the ongoing capacity expansion. Specifically, JSW Steel is expected to add 7MT by FY28 at a 5% CAGR, while JSPL is set to add 6.3MT by FY27 at an impressive 18% CAGR. Despite this significant increase in capacity, the report suggests that supply additions may still fall short of demand growth. Even under a conservative estimate of 6% CAGR in steel demand through FY27 (compared to 7% in the last five years), the domestic supply-demand balance is expected to improve, potentially reducing the need for Indian steel companies to rely on exports for volume growth. Analysts believe that Indian steel majors are well-positioned in the global metals sector due to their competitive cost structure. Lower labour costs and competitive iron ore prices, even for non-integrated producers; place them at the lower end of the global cost curve. The future expansion of India’s steel industry is expected to be driven primarily by brownfield projects, with strong domestic demand further supporting growth and reducing the industry’s dependency on exports. (ET)

Next Story
Infrastructure Transport

Metro Line 2B Phase 1 to Boost Realty in Mumbai’s Eastern Suburbs

Mumbai’s real estate sector is set for a major boost as Phase 1 of Metro Line 2B, between Mandale and Diamond Garden, nears completion. The Mumbai Metropolitan Region Development Authority (MMRDA) has confirmed that mandatory rectifications are done, and inspections by the Commissioner of Metro Railway Safety (CMRS) have been carried out. The 5.39-km stretch with five stations forms part of the larger DN Nagar–Mandale corridor, designed to ease congestion and improve east–west connectivity. Passenger operations are expected by December 2025, with the full line slated for 2027. ..

Next Story
Resources

WattPower wins Best Inverter award at Global Solar Expo 2025

WattPower, a leading renewable energy solutions provider, has won the award for “Best Inverter in the Utility Segment” at the Global Solar Expo 2025. The recognition underscores the company’s commitment to delivering reliable, high-performance and future-ready solar solutions for large-scale projects. At the forefront of utility-scale solar, WattPower manufactures advanced string inverters that directly feed power into the Indian grid. With robust technology, high-quality components and comprehensive product lifecycle support, its solutions stand among the most sophisticated in the ..

Next Story
Real Estate

Awfis delivers 67,000 sq. ft. innovation hub for eBay in Bengaluru

Awfis Space Solutions, India’s largest flexible workspace provider and the first publicly listed workspace solutions platform, has partnered with eBay to establish a 67,000 sq. ft. innovation hub at Embassy Tech Village, Bengaluru. The mandate covers design, build and management of the new office, which will act as a strategic hub supporting diverse functions and accelerating eBay’s AI-first commerce strategy. The centre will focus on artificial intelligence, engineering, product development and applied research, strengthening eBay’s growth in India. Embassy Tech Village, North Beng..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?