JSW Steel shares touch 4-month high after production jumps 12% YoY in February

JSW Steel, the flagship business of the diversified $24 billion JSW Group, saw its shares spike 1% in early morning trade on Monday, March 10, to a four-month high of ₹1,022 apiece after the company's consolidated crude steel production improved in February.

In a filing to the exchanges on Friday, the company informed investors that its consolidated crude steel production for February 2025 stood at 24.07 lakh tonnes, 12% higher year-on-year (YoY) compared to the same period last year.

Domestic steel production stood at 23.32 lakh tonnes, marking a 13% YoY increase. Over the last three decades, the company said it has grown from a single manufacturing unit to become India's leading integrated steel company, with a consolidated crude steel capacity of 35.7 MTPA, including 1.5 MTPA in the US. Domestic crude steel capacity stood at 32.5 MTPA, and the company expects it to reach 34.2 MTPA upon the full commissioning of the expansion project by its wholly owned subsidiary, JSW Vijayanagar Metallics Ltd. (JVML), at Vijayanagar.

In its next phase of growth, the company aims to increase consolidated capacity to 43.5 MTPA over the next three years. The company's plant in Vijayanagar, Karnataka, is the largest single-location steel-producing facility in India, with a capacity of 17.5 MTPA (including under commissioning), as per the exchange filing. 

Stock rebounds 8% in 6 sessions

JSW Steel's share price has recovered smartly, spiking nearly 8% in six trading sessions (including today) as a falling US dollar index, China’s stimulus measures, and production cuts announced by Beijing have all aided the recovery in the stock price.

China, the world's top steel producer, announced last week that it would restructure its giant steel industry through output cuts. China’s steel exports have exerted pressure on global steel prices, causing Indian steel firms to earn less per tonne of steel sold in recent quarters.

According to market experts, output cuts from China will help ease the supply glut and support steel prices for Indian companies. On the demand front, the world’s second-largest economy has set its GDP growth target for 2025 at around 5%, the same as the previous year.

Additionally, China has announced stimulus measures to boost growth amid escalating trade tensions with the U.S., fueling hopes that metal prices will remain resilient, and that demand will stay strong.

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