InvestorQ : Why is Jindal Steel planning to expand its production this year?
Arti Chavan made post

Why is Jindal Steel planning to expand its production this year?

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Rutuja Nigam answered.
1 month ago
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During the current financial year 2020-21, Jindal Steel and Power expects to produce a record 7.50 million tons of steel. In fact, the company is betting heavily on the sharp buoyancy in domestic and international demand; especially from China and Vietnam.

Interestingly, even as India has been trying to put curbs on Chinese imports, it is China that has been one of the biggest and most prolific buyers of steel from India. Another big buyer is Vietnam. Both these countries contributed immensely to Indian steel demand.

Jindal Steel and Power will produce 19% more steel this year in volume terms as it expects almost 8-fold increase in its export orders to 2.50 MT in 2020-21. In last few months, JSPL has added customers from Europe, South Africa, Saudi Arabia and UAE regions.

One big demand source within India has been the defence sector which needs steel for shipbuilding and other activities. With the government focusing on in-sourcing, this demand is building up in a big way.

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