JSW cautiously optimistic about global steel market

Market: Metals
23/10/26

Indian steelmaker JSW Steel has expressed cautious optimism about global steel demand in its latest financial report.

JSW highlighted several positive signals that could support the global economy and steel demand. The IMF has raised its 2026 global growth forecast to 3.1pc from 3pc, while US demand is being supported by artificial intelligence-related projects. China's manufacturing sector continues to expand and EU purchasing managers' index trends are strengthening.

India remains the fastest-growing major economy, with the Reserve Bank of India raising its financial-year GDP growth forecast to 7.1pc from 6.7pc.

Indian crude steel production rose by 2.9pc year on year to 85.1mn t in the first half of its April 2026-March 2027 fiscal year, India's steel ministry said. September production increased by 1.9pc on the year to 13.9mn t.

Indian finished steel consumption increased by 7.6pc year on year to 85mn t in April-September and by 7.7pc to 14.4mn t in September alone.

Ongoing conflicts and global inflationary and fiscal concerns continue to weigh on the market. But "looking ahead, easing geopolitical tensions could lead to reconstruction-led demand and boost growth", JSW said.

The company's revenue rose by 17pc year on year to 501.9bn rupees ($5.3bn) in the second quarter of the 2026-27 Indian fiscal year (July-September).

JSW Steel's crude steel production across its Indian and US operations increased by 5pc on the year and by 10pc on the quarter to 7.27mn t in July-September, the company said earlier this month. Its Indian production rose by 5pc on the year and by 11pc on the quarter to 7.07mn t.

JSW Vijayanagar Metallics, a wholly-owned subsidiary of JSW Steel, produced 1.24mn t of crude steel and sold 1.23mn t during the quarter. Its No. 3 blast furnace reached around 90pc utilisation, supporting higher production. Fellow JSW subsidiary JSW Steel Coated Products produced 1.19mn t and sold 1.24mn t.

JSW's Ohio electric arc furnace produced 224,933t of slab at 62pc capacity utilisation, with production reduced by a scheduled shutdown for electrical upgrades and maintenance. Its Texas operations produced 109,953t of plate and 23,846t of pipe, with respective utilisation rates of 42pc and 17pc. JSW's Italian rolled long steel production rose by 29pc quarter on quarter to 70,079t, following a shutdown at its rail mill in the previous quarter.

JSW's board has recently approved several investments, including a second 5mn t/yr steelmaking phase at its Utkal plant in Odisha. The unit is scheduled for commissioning in the first quarter of the 2030-31 fiscal year. The first 5mn t/yr steelmaking phase at Utkal is scheduled for commissioning in the third quarter of the 2029-30 fiscal year.

The JSW board has also approved a new 8mn t/yr pellet plant at its Vijayanagar site, and a 1.8mn t/yr cold-rolling complex and 1.2mn t/yr metal-coating facility at its Vasind steelworks. The Vasind additions are scheduled to start up in the second quarter of the firm's 2029-30 fiscal year.

JSW is expanding the capacity of its Dolvi steelworks from 10mn t/yr to 15mn t/yr, with completion targeted for September 2027.

By Andrey Telegin

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