Shares of Indian steel companies surged on Wednesday following China’s announcement to restructure its steel industry and reduce total production. This move is anticipated to curb the dumping of cheap steel into the Indian market, providing a significant boost to domestic steelmakers.
Steel Authority of India (SAIL) shares jumped 4.43% or Rs 4.77, closing at Rs 112.43 on the National Stock Exchange (NSE) during intra-day trading.
Tata Steel, one of the largest players in the industry, saw its stock rise by 4.55% or Rs 6.34 to settle at Rs 145.68, marking a solid recovery from its 52-week low of Rs 122.62 reached in January.
Jindal Stainless Steel also experienced gains, with shares rising 3.45% or Rs 20.5 to finish the session at Rs 615.45, bouncing back from its 52-week low of Rs 568.05 recorded in February 2025.
Welspun Corporation surged over 7% to close at Rs 758 per share on March 5, a significant climb from its 52-week low of Rs 440, hit last June.
APL Apollo Tubes shares rose over 3%, while JSW Steel gained more than 2%.
This rise in steel stock prices helped propel the Nifty Metal Index by over 4%, reaching 8,685.20, with Tata Steel driving much of the rally.
The surge in Indian steel stocks comes when domestic companies have been advocating for policies to protect them from the impact of cheap steel imports, especially from China.
In February, Tata Steel CEO TV Narendran mentioned that the Indian government is working on addressing concerns from steel manufacturers regarding these imports, with some positive outcomes expected soon.
The rally in steel stocks coincides with a broader market recovery, with both Sensex and Nifty bouncing back after weeks of selloffs, signaling renewed market optimism.
(With IANS inputs)
