The United States recently imposed a 104 percent tariff on Chinese steel imports, marking a sharp escalation in trade tensions between the world’s two largest economies. In 2023, China exported nearly 600,000 tonnes of steel to the US, while India accounted for approximately 260,000 tonnes.
With stricter duties expected to limit Chinese steel inflows, Indian manufacturers may stand to benefit by expanding their exports to the US. This shift could open up new market opportunities for Indian players like Tata Steel and JSW Steel, especially if the US looks to diversify its import sources to meet domestic demand.
Here are a few steel exporting companies that can capitalize on trade wars:
Tata Steel Ltd
With a market capitalization of Rs.1.67 lakh crore, Tata Steel Ltd’s share price closed at Rs.133.47 per share on Friday, rising 5 percent from its previous close.
Tata Steel exported approximately 4.5 lakh tonnes of steel in Q2 FY24, with a portion directed toward the U.S. market. The company primarily supplies products like hot rolled coils and ferrochrome, catering to demand in the infrastructure and automotive sectors.
Tata Steel UK’s exports to the U.S. contribute around 9 percent of its revenue and 7 percent of shipment volume, mostly in specialized steel segments. While recent figures for Indian operations aren’t specified, the company remains an active exporter to the U.S., despite trade barriers like the 25 percent tariff.
JSW Steel Ltd
With a market capitalization of Rs.2.42 lakh crore, JSW Steel Ltd’s share price closed at Rs.992.70 per share on Friday, rising 5 percent from its previous close.
JSW Steel, a leading Indian steel manufacturer, has a significant presence in the United States through its subsidiary, JSW Steel USA. The company operates a plate and pipe manufacturing facility in Baytown, Texas, and a steel mill in Mingo Junction, Ohio. These facilities primarily serve the U.S. market, producing hot-rolled plates, pipes, and other steel products.
In the financial year 2023-24, JSW Steel’s total steel sales were approximately 25 million metric tons. In the fourth quarter of FY24, JSW Steel’s exports reached 1.32 million tonnes, accounting for 20 percent of its total sales from Indian operations. This marked a substantial increase from previous quarters, as the company leveraged export opportunities to manage inventories amid restocking demand in global markets.
Steel Authority of India Ltd
With a market capitalization of Rs.44,721 crore, Steel Authority of India Ltd’s share price closed at Rs.108.25 per share on Friday, rising 3.12 percent from its previous close.
Steel Authority of India Ltd (SAIL) reported a 5 percent rise in crude steel production to 19.2 million tonnes in FY24, with saleable steel output increasing by 6.9 percent to 18.4 million tonnes. The company’s International Trade Division exports a range of products including rails, structurals, wire rods, and hot-rolled coils under the “SAIL” brand across global markets.
Although SAIL does not provide a specific breakdown of exports to the U.S., India exported around 95,000 tonnes of finished steel worth Rs.1,924 crores to the U.S. in FY24. SAIL’s Chairman, Amarendu Prakash stated that the recent U.S. tariff hike is unlikely to affect India significantly, as the U.S. continues to depend on imports of critical steel components.
Written by – Siddesh S Raskar
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