JSW Steel ventures into zinc-magnesium-aluminium alloy-coated steel products with JSW Magsure, stock trades in green

JSW Steel said on Thursday it is venturing into the manufacturing and marketing of zinc-magnesium-aluminium alloy-coated steel products in the domestic market with JSW Magsure. The firm said it has patented the unique chemical composition of JSW Magsure. Shares of JSW Steel were trading 0.26% higher on Friday morning.

According to media reports, the firm intends to capture 50% of the domestic market share in the fiscal year 2025. Besides the domestic market, JSW Steel is also exploring significant export opportunities for JSW Magsure in Europe and the Middle East.

The company explained that JSW Magsure has significant usage in applications in high-corrosive environments. For instance, JSW Magsure finds its usage across applications like steel structures in solar installations, silos, guard rails, air conditioner parts etc.

Since 2020, the Indian market for zinc-magnesium-aluminium alloy-coated steel has grown more than six times from approximately 15,000 metric tonnes to nearly 120,000 metric tonnes in FY24.

“So far the entire market requirement was serviced by imports. During the current fiscal, India’s requirement for Zinc-Magnesium-Aluminium alloy coated steel is expected to double to 2.5 lakh tonnes at a market value of ₹2,200 crore. This demand will be driven mainly by the renewable energy sector,” the firm said in a release. Currently, the special steel is supplied by a few global players.

Amarjit Singh Dahiya, business head of JSW Steel Coated Products said JSW Magsure is a technically advanced product with superior corrosion resistance properties with application across a wide variety of industries, particularly in highly corrosive environments. “The demand for an indigenous Made In India product is strong as indicated by the robust order book for JSW Magsure,” Dahiya said.

JSW Steel currently manufactures JSW Magsure along with other value-added products at its facilities in Karnataka and Maharashtra with a capacity of up to 9 lakh tonnes per annum. Shares of the company have risen nearly 1% since the beginning of the year. The stock has gained over 27% in the last one year.