SAIL and Other Indian Steel Shares Climb as China Cuts Production

Synopsis

On March 5, Mumbai's steel stocks surged after China announced plans to reduce steel output. This move is expected to protect Indian steel companies from cheap imports, driving significant increases in stock prices for major players like SAIL and Tata Steel.

Key Takeaways

Steel Authority of India (SAIL) stock rose by 4.43%.
Tata Steel shares increased by 4.55%.
Jindal Stainless Steel saw a 3.45% rise.
The Nifty Metal Index gained over 4%.
Positive market sentiment is returning.

Mumbai, March 5 (NationPress) Shares of steel companies in India experienced an upturn on Wednesday after China declared plans to restructure its steel sector and cut overall production. This decision is anticipated to lessen the influx of low-cost steel into the Indian market, giving a significant advantage to local steel producers.

Shares of Steel Authority of India (SAIL) rose by 4.43 percent or Rs 4.77, closing at Rs 112.43 on the National Stock Exchange (NSE) during the intra-day trading session.

Tata Steel, a leading industry player, witnessed its stock increase by 4.55 percent or Rs 6.34, finishing at Rs 145.68. This marks a robust rebound from its 52-week low of Rs 122.62, recorded in January of this year.

Jindal Stainless Steel also experienced a notable rise, with shares climbing 3.45 percent or Rs 20.5, ending the intra-day session at Rs 615.45. This follows a recovery from its 52-week low of Rs 568.05, which was reached in February 2025.

Welspun Corporation saw a remarkable increase of over 7 percent, closing at Rs 758 per share on March 5, a significant rise from its 52-week low of Rs 440 hit last June.

Shares of APL Apollo Tubes increased by more than 3 percent, while JSW Steel shares gained over 2 percent.

The rise in steel stock prices contributed to an overall increase of over 4 percent in the Nifty Metal Index, which reached 8,685.20. The surge in Tata Steel stock played a pivotal role in driving the index rally.

This uptick in steel stock prices occurs at a time when Indian steel companies are advocating for policies that safeguard them from the effects of cheap steel imports, especially from China.

In February, TV Narendran, CEO of Tata Steel, indicated that the Indian government is addressing the concerns of steel manufacturers regarding lower-priced imports, with positive developments anticipated soon.

The rise in steel stocks coincides with a general recovery in the market. Both the Sensex and Nifty saw gains, recovering from weeks of ongoing sell-offs, signaling a favorable shift in market sentiment.