The NSP Vision 2047 provides a long-term policy framework to build a globally competitive, technologically advanced and environmentally sustainable steel sector aligned with the vision of Viksit Bharat@2047.
As the National Steel Policy Vision 2047 is still in the draft stage and open for stakeholder consultation, the proposed targets are long-term goals. Representative image. Source: Unsplash
Shares of steel producers, iron ore miners, steel-processing companies and infrastructure-related stocks are expected to be on investors' radar on Monday, October 12, as the government has released a draft National Steel Policy Vision 2047, aiming for 604 million tonnes of crude steel production, 302 kg of per capita consumption, and 45 MT of steel exports.
The NSP Vision 2047 provides a long-term policy framework to build a globally competitive, technologically advanced and environmentally sustainable steel sector aligned with the vision of Viksit Bharat@2047.
Key details to know
As per the draft policy brought for stakeholder consultation, the aim is also to increase raw-material security, such as iron ore and coking coal, reduce imports, and increase the share of high-end steel in the country's overall steel output.
The government has proposed a new policy, even as the current National Steel Policy 2017 aims for 300 MT steel capacity by 2030, 160 kg per capita consumption, and ensuring raw material availability, among other goals.
"Manufacturing and infrastructure will remain the primary drivers of steel demand. Construction and infrastructure currently account for about 67 per cent of steel consumption, while automobiles, engineering goods, appliances and packaging contribute another 28 per cent," the policy draft said.
Demand will also be driven by rapid urbanisation, renewable energy expansion, clean mobility, digital infrastructure, and emerging technologies.
The Policy projects finished steel demand of 505 MT by 2047, requiring crude steel capacity of 604 MT, per capita consumption of 302 kg, and steel exports of 45 MT, the draft National Steel Policy 2027 said.
Key stocks in focus
Research, publicly available information, and analyst views suggest that the following stocks could be in focus following the government's announcement.
Tata Steel: The company could benefit from the government's long-term target of expanding crude steel capacity to 604 million tonnes by 2047. The policy's focus on high-value steel, technological upgrades, and environmentally sustainable production is also relevant to its operations.
JSW Steel: The proposed increase in domestic steel demand and capacity could support JSW Steel's long-term expansion plans. Investors will track whether the policy translates into fresh investments and improved demand for steel.
Steel Authority of India (SAIL): The public-sector steelmaker could benefit from the government's push to strengthen domestic steel production and reduce import dependence. Capacity utilisation, capital expenditure and access to raw materials will remain key factors.
Jindal Steel: The proposed expansion in steelmaking capacity could create opportunities for the company as infrastructure and manufacturing drive long-term demand. Investors will watch for capacity expansion plans and policy measures supporting domestic steel production.
Jindal Stainless: The policy's emphasis on increasing the share of high-end steel could support demand for specialised steel products. Stainless steel demand is linked to infrastructure, transport, industrial equipment and consumer applications.
NMDC: The iron ore producer could benefit from higher demand for domestic raw materials as India expands steel production and seeks to reduce import dependence. The actual impact will depend on iron ore prices, production volumes, and the pace of capacity additions.
Lloyds Metals and Energy: The company could be in focus as the draft policy highlights raw-material security, particularly iron ore and coking coal. Any increase in domestic sourcing and steel production could support demand for iron ore, although company-specific output and expansion plans will determine the benefit.
MOIL: The manganese ore producer is relevant to the broader steel industry because manganese is used in steelmaking. Higher steel production could support demand for manganese, though the impact will depend on production requirements and commodity prices.
Larsen & Toubro (L&T): Construction and infrastructure account for about 67% of India's steel consumption, according to the draft policy. Continued investment in infrastructure and industrial projects could support demand for L&T's engineering and construction services, although the policy does not directly guarantee new orders.
BEML: The company could see indirect opportunities if the policy's long-term vision translates into greater investment in railways, mining, and infrastructure. The potential benefit would depend on actual project spending and orders.
Container Corporation of India (CONCOR): An expansion in steel production could increase the movement of raw materials and finished steel across the country. This could create opportunities for freight and logistics operators, depending on the share of cargo transported through their networks.
Transport Corporation of India (TCI): Higher steel output and industrial activity could support demand for transportation and supply-chain services. The impact would depend on actual freight volumes and the company's exposure to steel-related logistics.
RHI Magnesita India: The company supplies refractory products used to withstand the high temperatures involved in steelmaking. An expansion in steel production capacity could support demand for these materials, although the impact will depend on furnace technology and capacity utilisation.
What to keep in mind
As the National Steel Policy Vision 2047 is still in the draft stage and open for stakeholder consultation, the proposed targets are long-term goals. The impact on steel and related stocks will depend on the final policy framework and how its proposals translate into actual investments, capacity additions, and demand growth.
With inputs from PTI
Disclaimer: This article is purely for informational purposes and should not be considered investment advice from Upstox. Please consult with a financial advisor before making any investment decisions.
Swati Verma is a business journalist with 12 years of experience. She writes on equities, corporate earnings, sectoral trends, and industry outlook, among others. At Upstox, she leads financial markets coverage.
