Now Reading: JSW Steel chases scale as Tata Steel prioritises value
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JSW Steel chases scale as Tata Steel prioritises value
JSW Steel plans to double steelmaking capacity to 80 million tonnes a year by 2031 through new projects, expansions and joint ventures. Tata Steel is taking a slower approach to primary steel…
The Story in Brief
JSW Steel plans to double steelmaking capacity to 80 million tonnes a year by 2031 through new projects, expansions and joint ventures. Tata Steel is taking a slower approach to primary steel capacity while expanding higher-value products such as precision tubes, speciality wires, coated sheets and tinplate.
JSW’s partnerships with Japan’s JFE Steel and South Korea’s Posco are expected to add 16 million tonnes of capacity. Tata Steel’s domestic capacity target is 40 million tonnes, compared with 27.4 million tonnes currently, but its next major addition is the 4.8 million-tonne Neelachal expansion, due in 2031. Kotak Institutional Equities and Jefferies question whether downstream growth should come before more primary steel capacity.
The Indian Opinion
The easy narrative is that JSW represents ambition while Tata Steel has become cautious. That misses the commercial trade-off. More furnaces bring scale but also demand capital, raw-material security and favourable steel prices. Downstream products can offer better margins, though they still depend on reliable primary steel supply. The useful test is whether Tata’s value-added business can lift profits before 2031, while JSW turns its capacity plans into operating plants without stretching returns.
Source: livemint.com
This story was synthesised by AI from the source linked above.
