Impact of Chinese Steel Imports on JSW Steel and Industry Prospects

Increased Chinese steel imports are affecting the margins of domestic steel players, JSW Steel Chairman Sajjan Jindal stated. Despite robust domestic demand and highest-ever production, global weak steel demand and high Chinese exports pressure margins. JSW plans expansion to 50 million tonnes per annum by FY31, focusing on green steel manufacturing.

Increased Chinese steel imports are adversely impacting the margins of domestic players, as stated by JSW Steel Chairman Sajjan Jindal during the company's Annual General Meeting (AGM) on Friday.

Jindal highlighted that several countries have already raised barriers against steel imports. The Indian steel industry is also in talks with the government to ensure a level playing field. Domestic steel demand surged by 13.6% in FY24, driven by infrastructure development and robust demand from major steel-consuming sectors.

However, Jindal noted that weak global steel demand is leading to rising imports into India, which in turn, adversely affects domestic steelmakers' margins due to elevated Chinese production and exports. This has put pressure on global steel markets.

In FY24, JSW Steel achieved its highest-ever crude steel production with a capacity utilization of 92%. The company's revenue from operations stood at Rs 1,75,006 crore, with EBITDA of Rs 28,236 crore and a profit after tax of Rs 8,973 crore. The Board recommended a dividend of Rs 7.30 per share for FY24, subject to shareholders' approval.

Looking ahead, JSW Steel plans to expand its capacity to 50 million tonnes per annum in India by FY31. The Board recently approved a 5 million tonnes expansion at Dolvi, Maharashtra. Additionally, the company aims to establish a green steel manufacturing facility with an initial capacity of 2 million tonnes per annum, expandable to 4 million tonnes.

(With inputs from agencies.)