JSW Steel Hits Record High as Metal Stocks Surge Amid Strong Demand

Metal stocks are witnessing a strong rally on Dalal Street, with JSW Steel hitting an all-time high of ₹1,072 per share. The stock has gained 11.55% in March, marking its biggest monthly gain since June 2023. This surge is driven by strong demand, global supply constraints, and positive market sentiment despite the 25% steel and aluminum tariffs imposed by the US. Analysts believe that Indian steel companies will continue to benefit from domestic and global factors, pushing stock prices higher.

The Directorate General of Trade Remedies (DGTR) has proposed a 12% safeguard duty on certain steel imports for 200 days to protect domestic manufacturers. If implemented, this could provide further support to steel prices, enhancing profitability for Indian companies like JSW Steel, Tata Steel, and SAIL. Indian steel prices have already risen by 5% from their December lows, and analysts expect further upside.

Global factors are also playing a crucial role in the ongoing rally. Vietnam and South Korea, two major destinations for Chinese steel exports, have imposed anti-dumping tariffs on Chinese imports. This has tightened global steel supply, benefiting Indian manufacturers. Additionally, China’s economic stimulus measures and production cuts have contributed to rising steel prices. The weakening US dollar index has further improved market sentiment.

Leading brokerage firm Jefferies estimates Indian steel prices at ₹51,000-₹52,500 per tonne for FY26 and FY27, which is 3-6% above the current spot price of ₹49,500. It also projects that a ₹1,000 increase in steel prices could boost JSW Steel’s FY26 EBITDA by 9% and its EPS by 23%.

Meanwhile, JSW Steel’s production is on an upward trajectory. In February 2025, the company’s consolidated crude steel output stood at 24.07 lakh tonnes, up 12% year-on-year. Domestic production rose by 13% to 23.32 lakh tonnes. The company is expanding its capacity, with its Vijayanagar plant in Karnataka being India’s largest single-location steel-producing facility.

Fitch Ratings expects India’s steel demand to grow by 10% in FY26, driven by strong infrastructure, construction, and manufacturing activities. While redirected steel exports from the US tariff war could pose challenges, the overall outlook for Indian steel remains positive.