Capacity expansion to drive margins for Jindal Steel & Power stock

JSPL projects a capex allocation ranging between Rs 7,500-10,000 crore annually for the next three-year period

The global iron and steel industry is experiencing problems due to China’s supply-demand mismatch. China produces well over 50 per cent of the world’s steel and persistent weaknesses in China’s massive real estate and construction sector has led to Chinese exports flooding global markets. Global demand is also weak. Hence steel prices are low.

While India has robust domestic demand, Indian steel producers are seeing soft prices due to the global situation.

As and when China’s cycle picks up, and the global economy accelerates, demand could rebound. Apart from that, there’s likely to be a long period of growing domestic