Steel stocks today: Tata Steel, Welspun Corp, Jindal Steel, others jump up to 6% after China announces plans to restructure steel industry

Shares of steel companies are witnessing an uptrend in the domestic equity markets on Wednesday after China announced its plans to restructure its steel industry to cut its total output.

Shares of Welspun Corp are trading 5.76% up at ₹749.50 apiece on the NSE, while Jindal Stainless shares are up 3.16% at ₹613.15. JSW Steel shares are trading 2.18% higher at ₹995.30 apiece, while Steel Authority of India Limited (SAIL) stock is 3.15% up at ₹111.05 per share.

Tata Steel shares are up by 3.7% at ₹144.50 on the NSE, while APL Apollo Tubes and Jindal Steel & Power stocks are up by 3.3% and 1.7%, respectively.

Steel stocks are rising along with the market today, as SENSEX and NIFTY retreated to the green after a major market correction in the previous sessions.

With recent US tariffs on imports from Mexico, Canada, and China, the Indian steel industry is expected to be affected. The country will become the natural target for cheap Chinese steel at a time when domestic steel players are focusing on expanding capacity, a PTI report, citing experts, said.

US President Donald Trump imposed 25% tariffs on imports from Mexico and Canada starting Tuesday and doubled tariffs on all Chinese imports to 20%.

"The USA under the new President has announced new tariffs on China, Mexico and Canada. China is a major steel exporter to the USA. The recently announced US tariffs on steel imports from China means that this export will become unviable and surplus steel will be seeking new markets," the PTI report quoted former President of Indian Stainless Steel Development Association (ISSDA) Karan Pahuja as saying.

The latest move by China is expected to decrease cheap steel dumping into the domestic market, which would positively impact Indian steel companies, a Moneycontrol report noted.

Indian steel companies have been demanding an anti-dumping policy from the government to protect themselves against cheap steel imports from countries like China, the report added.