Steel Firms to Hold Back Expansion Amid Import Pressure

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Steel Firms to Hold Back Expansion Amid Import Pressure

Business 12 Mar 2025 10:25 AM IST Economic Times

Indian steel companies are likely to slow down their capacity expansion plans as rising steel imports continue to pressure profit margins, analysts say. The increased inflow of cheaper steel from countries like China and Russia is undercutting domestic prices, raising concerns about profitability.

Key Details:

Imports of finished steel rose 18% year-on-year in the April-February period of FY25.
Domestic steel prices have remained under pressure due to oversupply from imports.
Analysts warn that margins could decline further if the government does not impose protective measures.
Companies like JSW Steel, Tata Steel, and SAIL have hinted at adjusting their capex plans.
A slowdown in infrastructure projects has also reduced domestic demand, exacerbating the issue.

Market Impact:
Steel stocks have been underperforming due to weak margins and the threat of increased imports. Analysts believe that unless import restrictions are introduced, capacity expansion may remain subdued.

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Steel Firms to Hold Back Expansion Amid Import Pressure

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