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Imports of steel into the European Economic Area will face a carbon tax under the EU’s Carbon Border Adjustment Mechanism (CBAM) starting on January 1 View More
Indian steel exports to Europe will likely decrease as the European Union's carbon tax begins next month. Mills are now exploring new markets in Africa and the Middle East to compensate for this shift. The new levy aims to reduce carbon emissions. View More
India's steel exports to Europe are expected to fall once the European Union 's carbon tax takes effect next month, prompting mills to seek alternative buyers in Africa and the Middle East, industry executives and analysts said. Imports of steel into the European Economic Area will face a carbon tax under the EU's Carbon Border Adjustment Mechanism (CBAM) starting on January 1. The decarbonisation-oriented levy will also apply to cement, electricity, fertilisers and other products. Mills in India, the world's second-largest crude steel producer after China, ship roughly two-thirds of their exports to Europe. Experts say Indian mills will need to cut their carbon emissions. "We recognise that we have to do environment-friendly production and companies are gearing up to comply, but they are also looking at alternative markets too," Aruna Sharma, India's former steel secretary, told Reuters. Live Events Most of India's steel is produced in blast furnaces, which generate higher emissions, said Sandeep Poundrik, the top civil servant at the Ministry of Steel, in September. He also said further expansion of blast furnace capacity is a concern. Additional planned capacity could add about 680 million metric tons of carbon-dioxide-equivalent emissions from the sector, according to Global Energy Monitor, a U.S.-based research group. Indian steelmakers have planned new investments to lift output as strong domestic demand - fuelled by government-backed infrastructure spending - continues to rise. "Most of the companies are yet figuring out a way to deal with CBAM," said Ravi Sodah, a cement, metals and mining analyst at Elara Capital. "In the near term, it is expected to slow down India's exports to EU." One way to mitigate the problem is to use electric arc furnaces, which emit far less carbon than conventional blast furnaces. Two executives at large Indian steelmakers, who asked not to be named because they are not authorised to speak to the media, said companies had little clarity on how the tax would be calculated. "About 60% of our exports go to Europe and we want to know what is the rate that will be levied and will it be company specific?" said one of the executives. The levy will raise the cost of Indian steel exports to the EU, especially blast furnace products, squeezing margins and EU market share unless producers cut emissions, said Lakshmanan R, head of South & Southeast Asia corporates at CreditSights in Singapore. To offset lower exports to the EU, Indian steel mills are trying to tap into the Middle East and offering quick delivery and flexible payment terms, said Shankhadeep Mukherjee, principal analyst at London-based CRU Group. .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;} .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:'Montserrat';} .Pbannertext img{height:20px;margin:0 6px} .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:'Montserrat';} .Pbannerbutton img{height:20px;margin-right:6px} .Pbannerbutton a:hover{background-color:#f7f7f7} Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel)
Motilal Oswal, Morgan Stanley, JP Morgan, Jefferies maintain buy calls, while Nuvama reduces rating on the stock and Citi, Elara maintain sell calls View More
In a landmark collaboration, JSW Steel is joining forces with JFE Steel in a massive ?15,750 crore venture, acquiring Bhushan Power & Steel's facility in Odisha. This transformative agreement is anticipated to cut JSW Steel's debt load by nearly 50%, paving the way for accelerated growth and enhanced operational capacity at Bhushan Power & Steel beyond its current milestones. View More
JSW Steel on Wednesday announced a joint venture with Japan's JFE Steel worth ₹15,750 crore, as part of which India's largest steel producer will sell its subsidiary Bhushan Power & Steel's integrated steel facility in Odisha to the 50:50 JV, according to a stock exchange filing. The JV will act as a "double engine" for JSW Steel, its chief executive Jayant Acharya told media persons. The deal will help JSW Steel slash its debt by as much as ₹37,250 crore, nearly half of its current debt of ₹79,153 crore as of September-end, he said. This deleveraging, in turn, will allow JSW Steel to grow at a faster pace, while the JV will help Bhushan Power & Steel Limited (BPSL) grow beyond the currently envisioned 10 million tonnes. "This is a win-win deal for JSW Steel," Acharya said. "We already have a plan to grow up to 50 million (tonnes) and have various assets which we can take further. Parallelly, the joint venture will be able to chart its own path of growth." JSW Steel aims to increase its production capacity to 43.4 million tonnes annually in three years from 34.2 million tonnes at present, and to 50 million tonnes by 2030-31. Live Events BPSL will first be sold by way of a slump sale on a going concern basis to JSW Sambalpur Steel for a cash consideration of ₹24,483 crore. JSW Sambalpur is wholly owned by JSW Kalinga Steel Limited, which in turn is wholly owned by Piombino Steel Limited. About 82.65% of Piombino Steel is owned by JSW Steel, while 17.35% of the company is owned by JSW Shipping & Logistics Pvt Ltd. JFE Steel will buy a 50% equity stake in JSW Kalinga for a total of ₹15,750 crore in two equal tranches. Following the slump sale and the related steps, JSW Kalinga will then be held jointly by JSW Steel and JFE Steel with a 50% stake each. Debt reduction, growth JSW Steel's debt will decrease by ₹37,250 crore by June 2026, its senior management guided. "The cash which JSW Steel will get is ₹32,358 crore. In addition to that, we have transferred about ₹5,000 crore of debt as a part of the slump sale," Acharya said. On capacity expansion, he said, "What we will be doing is, we will be accelerating our own capital expenditure at our sites - Vijayanagar, Paradip. We will also be looking at accelerating Salav." Bhushan Power & Steel Bhushan Power & Steel was bought for ₹19,700 crore in 2019 through the Insolvency and Bankruptcy Code. Since it became a subsidiary in October 2021, JSW Steel has invested a capex of about ₹3,500-4,500 crore. "The joint venture will have capability to grow to 10 million tonnes and beyond," Acharya said. "JFE's deep technical expertise globally and JSW's proven capability on project execution and operational excellence, will further add value to the joint venture as we grow." .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;} .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:'Montserrat';} .Pbannertext img{height:20px;margin:0 6px} .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:'Montserrat';} .Pbannerbutton img{height:20px;margin-right:6px} .Pbannerbutton a:hover{background-color:#f7f7f7} Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel)
The deal, anchored by JFE’s ?15,750-crore commitment, is expected to nearly halve JSW Steel’s debt and ring-fence the BPSL assets under a clean JV structure. View More
JFE Steel and JSW Steel have formed a joint venture to operate Bhushan Power & Steel Limited (BPSL), marking a significant overseas investment in India's steel sector. JFE will invest ?15,750 crore for a 50% stake in JSW Kalinga Steel, aiming to boost BPSL's capacity to 10 million tonnes by 2030 and meet India's growing steel demand with value-added products. View More
Japan's JFE Steel Corporation and JSW Steel Limited on Wednesday announced a joint venture to jointly operate the steel business of Bhushan Power & Steel Limited (BPSL), marking one of the largest overseas investments in India’s steel industry. The agreement, signed on December 3, 2025, involves JFE investing ₹15,750 crore for a 50% stake in JSW Kalinga Steel, following regulatory approvals. The largest ever acquisition by JSW Steel, Bhushan Power, was bought for ₹19,700 crore in 2019 through the Insolvency and Bankruptcy Code. Since it became a subsidiary in October 2021, JSW Steel has invested close to ₹3,500-₹4,500 crore as capital expenditure for growth and maintenance of Bhushan Steel. JSW Steel shares were trading at Rs 1134.75 apiece on the BSE, down 2.3% on Wednesday as of 2.52 PM. BPSL operates an integrated steel plant and an iron ore mine in Odisha with an annual crude steel capacity of 4.5 million tonnes. The joint venture plans to increase capacity to 10 million tonnes by 2030, with scope to scale further to 15 million tonnes, positioning the asset among the largest in the country. Live Events The companies expect the partnership to meet India’s growing steel demand while targeting higher production of value-added steel. It is to be noted that JFE Steel also held a 15% stake in JSW Steel at the end of the September quarter. In a statement, JFE Steel President and CEO Masayuki Hirose said that the company has engaged in various collaborations and partnerships since it entered in a comprehensive alliance agreement with JSW in 2009. "...we have engaged including capital participation; licensing of manufacturing technology for automotive steel and non-oriented electrical steel sheets; and a joint venture for the manufacturing of grain-oriented electrical steel sheet. Our relationship is now entering a new phase. I am confident that by leveraging our technological strengths and jointly operating an integrated steel plant in India with JSW, we will not only contribute to the further growth of both companies but also make a significant contribution to the development of the Indian steel industry,” Hirose said. JSW Steel Joint Managing Director and CEO Jayant Acharya said the partnership reinforces the company’s long-term expansion strategy. “Today’s announcement brings together JSW’s expertise in India with JFE’s technological strengths, and will enable the joint venture to realise its growth potential and produce a variety of value-added steels. India is the fastest growing major economy as well as steel market in the world, and this transaction enables JSW to accelerate its growth in a financially prudent manner, and create further value for its stakeholders.” As part of the agreement, the BPSL steel business will be transferred via slump sale to JSW Sambalpur Steel Limited for ₹24,483 crore. The transaction is subject to approvals from regulators including the Competition Commission of India. JSW Steel said the deal aligns with its target of reaching 50 million tonnes per annum steelmaking capacity by FY31. The company noted that the joint venture structure will support growth while maintaining financial discipline and enable long-term participation in India’s steel expansion cycle. .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;} .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:'Montserrat';} .Pbannertext img{height:20px;margin:0 6px} .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:'Montserrat';} .Pbannerbutton img{height:20px;margin-right:6px} .Pbannerbutton a:hover{background-color:#f7f7f7} Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel)
India's iron ore imports have reached a six-year peak. Steel mills are buying more from abroad to secure high-grade ore and benefit from lower international prices. JSW Steel is the leading overseas buyer. This trend is driven by domestic production challenges and the convenience of importing for coastal plants. Imports are expected to remain high. View More
India's iron ore imports hit a six-year high this year as steel mills stepped up overseas purchases to overcome shortages of high-grade ore and take advantage of lower global prices for the steelmaking raw material, analysts and trade officials said. Iron ore imports more than doubled to over 10 million metric tons in the first 10 months of 2025 from a year earlier, Lalit Ladkat, senior analyst at London-headquartered CRU Group, told Reuters. Between January and October, JSW Steel , the country's biggest steelmaker by capacity, emerged as the top buyer of iron ore from overseas suppliers, analysts and officials said. Average imports during 2019-2024 were 4.3 million metric tons a year, Ladkat said. "In 2025, demand outpaced the domestic production and availability of higher-grade ores was a big concern," Ladkat said, adding that delays in starting production at already auctioned mines were among the reasons supply growth was slowing. Live Events Last month, the top civil servant at the Ministry of Steel ruled out any shortage of iron ore in the country. Low import prices, along with the feasibility of importing for steel plants near ports, such as JSW Steel's plant in the western state of Maharashtra, helped boost shipments, according to a senior government official and analysts. India has been importing iron ore mainly from Brazil, Oman and Australia. Brazilian miner Vale is preparing to meet rising iron ore demand from India, which could double its steel production by the end of the decade, CEO Gustavo Pimenta told Reuters last month. This year, heavy rainfall in the eastern state of Odisha, which accounts for nearly 55% of India's total iron ore output, led to lower production, according to commodities consultancy BigMint. "Imports may exceed 11-12 million metric tons in FY26 and could remain elevated next year as well if domestic production or captive sourcing does not improve," BigMint said, referring to the fiscal year to March 2026. Iron ore output in India, also the world's second-biggest crude steel producer, rose to 289 million metric tons in fiscal 2025, from 277 million metric tons a year earlier, according to government data. Earlier this year, the government urged steel mills to acquire iron ore mines overseas, while expressing concern over slow development in greenfield iron ore mines. .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;} .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:'Montserrat';} .Pbannertext img{height:20px;margin:0 6px} .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:'Montserrat';} .Pbannerbutton img{height:20px;margin-right:6px} .Pbannerbutton a:hover{background-color:#f7f7f7} Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel)
Iron ore imports more than doubled to over 10 million metric
tons in the first 10 months of 2025 from a year earlier View More