JSW Steel - Robust Domestic Demand, Increase In Capacity To Drive Growth: Motilal Oswal
Capacity expansion on track to become a steel mammoth.
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Motilal Oswal Report
JSW Steel Ltd. is all set to capture the growing domestic steel demand amid rapid expansion in infrastructure and construction. We believe the company is adding capacity at a right time to capture the robust growth journey.
JSW Steel, a leading integrated steel manufacturer with strong iron ore linkages, ensures adequate raw material supply. With 13 active iron ore mines, the company has an aggregate reserve of over 1.3 billion tonne.
Around 45% of the iron ore requirement is met by captive mines and JSW Steel is enhancing its mining capabilities to strengthen its operations in Odisha.
JSW Steel offers a wide gamut of flat and long steel products with strong focus on value added products. The share of VAP stands at around 55% of the total volumes.
With the removal of export duty on iron ore, pellet, and steel in Nov-22 and opening up of China and other European markets, prices of steel have started to increase since the start of Jan-23.
Global steel prices are also on the up move, on the back of improved macros, and hence, we believe global players such as JSW Steel with its diversified product offerings is well placed to capture the domestic as well as international markets.
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