Archive · 25 Jun 2025
Steel Prices Down: Analysis for Tata Steel, SAIL & More
Steel prices are going down around the world.
This is happening because fewer people are buying steel, which makes it harder for steel companies to make money.
Because of this, steel makers are buying less of the materials they need to make steel.
This report recommends to invest in some steel companies over others, with some likely to do better than others due to this environment.
Global steel prices are declining in major markets.
Steel prices in China, US, Germany, and India have fallen.
Squeezed steel margins lead to reduced raw material purchases.
Domestic flat steel prices decreased but still exceed import parity.
Kotak recommends JSPL and JSW Steel over Tata Steel, SAIL, and NMDC.
- Who
- Kotak Institutional Equities.
- What
- Decreasing global steel prices and its impact on steel companies.
- When
- June 2025, with expectations for Q1 FY26.
- Where
- China, US, Germany, India, and global markets.
- Why
- Due to subdued demand and a negative feedback loop.
Integrated Steel Producers
Non-Integrated Steel Producers
Investment Recommendation
Integrated Steel Producers
Tata Steel, SAIL, NMDC face challenges.
Non-Integrated Steel Producers
JSPL and JSW Steel are preferred.
- HRC Price Decline (China)
- 2%
- HRC Price Decline (US)
- 3%
- HRC Price Decline (Germany)
- 4%
- HRC Price Decline (India)
- 1%
- Domestic Flat Steel Price Decrease
- 4%
- Premium Hard Coking Coal Price Decrease
- 5%
- Seaborne Iron Ore Price Decrease
- 8-9%
- Recommendation
- JSPL, JSW Steel (Over Tata Steel, SAIL)
Sources
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