Analyst Concall
JSW Steel to raise captive iron ore capacity in next 1 year
This story was originally published at 20:54 IST on 17 October 2025
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--JSW Steel: Broader slowdown still driven by uncertainties across mkts
--CONTEXT: JSW Steel mgmt's comments in post-earnings concall with analysts
--JSW Steel: Weak real estate growth leading to lower steel consumption
--JSW Steel: Domestic steel prices declined during Q2, affecting realisation
--JSW Steel: Exports will need close monitoring Oct-Mar
--JSW Steel: Need to watch steel imports into India amid US tariffs
--JSW Steel: See domestic steel prices improving in Q3
--JSW Steel: Expect iron ore prices to decline in Q3
--JSW Steel: Expect some increase in coking coal costs in Q3
--JSW Steel: South, west India regions quite large for structural steel pdts
--JSW Steel: Too early to talk of GST cuts' impact on user industries
By Rajesh Gajra and J. Navya Sruthi
NEW DELHI/MUMBAI – Three new iron ore mines in Karnataka are expected to start in the June quarter of 2026-27 (Apr-Mar) which will together produce around 4 million tonnes, the management of JSW Steel said Friday in a post-September quarter earnings conference call with investors and analysts. This is a part of the company's endeavour to improve its raw material security and reduce input costs, it said. The management also said that in Goa, where the company had won three mines, the mining activities are scheduled to begin in the December quarter. The company currently operates 12 iron ore mines with nine in Karnataka and three in Odisha.
The company expects the iron ore prices in the market to go down in the December quarter. Iron ore price "has been...on the downtrend trend...we have seen two corrections in the last one month in eastern part of India...(and this) may continue because there has been decent supplies happening," the management said.
But on the coking coal front, the management said there has been a slight uptick in prices in the international market. JSW Steel may see around $3-$5 increase in its coking coal costs in the December quarter, the management said. Following a decline in steel prices, which impacted realisations, in the September quarter, the management expects the prices to improve in Nov-Dec, and generally be positive for the company for the entire second half of the current financial year.
On the impact of tariff measures being undertaken by various countries, following the US tariffs, the management said while exports need to be watched, "we also need to watch out for imports which can come in because of that into India."
Talking about the ongoing geopolitical tensions, the management said global growth continues to be fairly resilient even in the light of ongoing challenges on both geopolitical tensions and trade worries. "Although the tariff hikes were less severe for many countries than initially anticipated, the broader slowdown is still being driven by ongoing uncertainties, which continue to dampen business sentiment and investment decisions across markets," the management said.
Commenting on the impact of the government's recent goods and services tax cut on the company's user industries, the management said it was "too early" to talk about it, because there was a pent-up demand before that. The management, however, said the GST cuts are expected to lift consumer sentiment, boost demand across key sectors, and ultimately drive private capital expenditure as companies achieve higher utilisation. The management expects domestic demand to be seasonally strong with the tailwind of government and private capital expenditure both likely to improve in the second half of FY26.
The global demand for steel is strong, particularly in China where it is supported by the automotive sector, the management said. "But real estate has been weak, leading to lower steel consumption," it said.
The management also outlined the prospects from the setting up of a new 1 million tonne per year electric arc furnace project in Kadapa in Andhra Pradesh by the end of FY29, and which is aimed at producing structural steel. It said there is a good market for structural steel products in south and west India, with increasing use in the construction and infrastructure sectors on the back of a transition to steel-intensive buildings from concrete and cement.
JSW Steel announced its September quarter earnings Friday. The company's consolidated net profit jumped 3.7 times on year to INR 16.2 billion, while the revenue from operations rose 14% on year to INR 451.5 billion. On Friday, shares of JSW Steel closed at INR 1,163.30, down 0.8%, on the National Stock Exchange. End
Edited by Akul Nishant Akhoury
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