India’s steel industry is facing a curious paradox — temporary oversupply and falling prices even as long-term demand remains robust. Yet, JSW Steel Ltd, the country’s largest steel producer, is unfazed. In a recent interview with Mint, Jayant Acharya, Joint Managing Director and CEO of JSW Steel, offered a confident view: the current supply glut is a passing phase, and India’s growth story will soon absorb the excess.
The Short-Term Surplus, Long-Term Promise
Steel prices in India have been under pressure despite the imposition of a 12% safeguard duty on imports. Domestic hot-rolled coil (HRC) prices have dipped 5% since the start of FY26, even as Chinese HRC prices rose by 4.5% in rupee terms. This indicates that the market is adjusting to a temporary imbalance — one driven by several new capacities becoming operational almost simultaneously.
Acharya remains optimistic, explaining that “capacities are lumpy.” Large steel projects, he said, do not arrive in a linear fashion but in bursts. “When they come in a few months’ gap, you may see a little bit of supply exceeding demand, which always then evens out,” he noted. The long-term trajectory remains solid, supported by India’s fast-paced urbanization, infrastructure expansion, and growing consumption.
India’s Steel Appetite: A Demand-Driven Future
India’s steel demand is growing at around 9% annually — one of the fastest rates globally. Over the next two years, this translates into an additional 25–30 million tonnes of consumption. Acharya pointed out that while the supply pipeline is healthy, it won’t be sufficient to meet India’s booming appetite for steel.
“Any new projects announced now will take four to five years to start production,” he emphasized, underlining the need to keep expanding capacity today to meet future demand.
JSW Steel’s Roadmap to 50 MTPA
JSW Steel’s domestic capacity currently stands at 34.2 million tonnes per annum (mtpa), but the company is aggressively expanding. By FY28, it expects to reach 41.9 mtpa, and by FY29, the number will touch 42.9 mtpa with the commissioning of a new electric arc furnace (EAF) in Kadapa, Andhra Pradesh.
Looking further ahead, JSW Steel aims to hit 50 mtpa by 2030 — a capacity equal to one-third of India’s current total steel consumption. To achieve this, the company plans to expand existing facilities at Vijayanagar, Bhushan Power & Steel (BPSL), and its DRI plant at Salav, while also pursuing a greenfield project in Paradip, Odisha.
The POSCO Partnership: A Technological Leap
A key component of JSW’s future roadmap is its 50-50 joint venture with South Korea’s POSCO. The partnership aims to set up a 6 mtpa plant in Odisha, involving an investment of ₹70,000–80,000 crore ($8–9 billion).
Acharya confirmed that the venture is progressing well, with land identification and documentation underway. “We are looking at options for pieces of land in Odisha, depending on proximity to iron ore, city and the port,” he said. The company aims to finalize land within six months before moving ahead with environmental and forest clearances.
POSCO’s technological prowess combined with JSW’s on-ground expertise is expected to create one of India’s most advanced steel manufacturing hubs. “POSCO brings strong technological capabilities, while JSW brings the ability to execute projects faster,” Acharya added.
Trade Protection and Policy Alignment
Acharya’s optimism is balanced by a pragmatic call for continued policy support. Beyond the temporary safeguard duty imposed in April, JSW expects the finance ministry to approve a three-year safeguard regime soon. The proposed staggered duty — 12% in the first year, tapering to 11% in the third — aims to shield domestic producers from import dumping.
He also called for additional trade measures, such as anti-dumping duties, noting that global trade tensions are leading to market distortions. “We are the fastest growing economy in the world, and therefore… the basic demand in the country is high. Many are looking at India as an opportunity,” Acharya said, stressing the need to “allow trade, but not dumping.”
Conclusion: Confidence Forged in Steel
JSW Steel’s outlook captures the dual reality of India’s steel sector — short-term volatility but long-term strength. With urban infrastructure booming, manufacturing expanding, and housing demand soaring, India’s steel consumption story is only beginning.
As global steel markets navigate trade wars and overcapacity, JSW’s strategy — combining domestic expansion, global partnerships, and policy alignment — positions it at the heart of India’s industrial rise. The company’s roadmap to 50 mtpa by 2030 isn’t just a growth plan; it’s a reflection of confidence in India’s unstoppable economic momentum.
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