Jindal steel boss says Chinese steel imports hurt margins

Domestic steel demand increased by 13.6 per cent in FY24, outpacing economic growth

• Eastern Eye
• 26 July, 2024

Follow Us

By: Eastern Eye

Increased Chinese steel imports are adversely impacting the margins of domestic players, JSW Steel chairman Sajjan Jindal stated on Friday (26).

Addressing the company’s Annual General Meeting (AGM), Jindal noted that several countries have already imposed barriers against steel imports. The Indian steel industry is also engaging with the government to ensure a level playing field.

The domestic steel demand increased by 13.6 per cent in FY24, outpacing economic growth. This surge was driven by infrastructure development and robust demand from all major steel-consuming sectors, he said.

“However, global steel demand remains weak, leading to rising imports into India and affecting domestic steelmakers’ margins. This is primarily due to elevated Chinese production and exports, which are pressuring global steel markets,” Jindal said addressing the shareholders of JSW Steel.

Moreover, healthy demand for steel in the country also makes the domestic market vulnerable to imports amid weak global demand.

Sharing business updates for JSW Steel in FY24, Jindal said the company achieved its highest-ever crude steel production with a capacity utilization of 92 per cent during the year.

JSW Steel met 100 per cent of its production and sales guidance for FY24. Its revenue from operations reached ₹1,75,006 crore (£162.45 billion), with an earnings before interest, taxes, depreciation, and amortization (EBITDA) of ₹28,236 crore (£26.21bn) and a profit after tax of ₹8,973 crore (£8.33bn).

The board has recommended a dividend of ₹7.30 (£0.07) per share for FY24, subject to shareholders approval.

Further, the company 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, in Maharashtra increasing the company’s domestic capacity to 42 million tonnes and total capacity to 43.5 million tonnes by September 2027.

“We also plan to establish a green steel manufacturing facility, initially at 2 million tonnes per annum and expandable to 4 million tonnes,” Jindal added. (PTI)