CHINESE STEEL PRODUCTION DECLINED TO THE LOWEST SINCE 2017
News: As per media sources, Chinese steel production declined by 10.4% YoY to 77.9 MnT in August'24. Cumulatively, the production volume YTD CY24 was at 691 MnT, declined by 3.3% YoY.
Views: The decline in Chinese steel production for third consecutive month augurs well for Indian steel producers, as it is expected to reduce steel imports from China to India. Additionally, many Chinese steel mills have been scaling back their production, which will likely support the domestic steel prices from the low of Rs 50,000 per ton. Within the domestic steel space, we prefer JSW Steel as our top pick given the ambitious expansion plans of reaching to 50 MTPA by 2031, superior product portfolio and healthy profitability guidance.
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