Oversupply is temporary, growing India will absorb it: JSW Steel CEO
Despite protective duties on imports, domestic steel prices are currently under pressure; This highlights the fine line between the industry’s short-term surplus and long-term expansion. Acharya’s outlook is bullish on India’s growth-led demand cycle even as the global market grapples with cheap imports and trade protection measures.
“I’m not worried at all about the capacity. Yes, capacities fluctuate, so when they come in a few months apart, you can see supply exceeding demand, which always balances out,” Acharya said, adding: “But I don’t see any reason to worry.”
According to Elara Capital’s October report, since the beginning of fiscal year 2026 (FY26), China’s hot rolled coil (HRC) prices have increased by 4.5% in rupee terms, while domestic prices have fallen by 5% despite the 12% safeguard duty. China’s hot rolled coil prices serve as a leading indicator for global steel prices.
India introduced a temporary safeguard duty in April to protect local producers from cheap Chinese imports. His term of office is expected to expire this month.
Steel capacity does not increase evenly every year; The CEO said it came in large chunks. At the same time, he noted that India’s steel demand is growing at around 9% annually, which means an extra demand of 25-30 million tonnes (mt) in the next two years.
“However, the existing pipeline will not be sufficient to meet this demand as any new project currently announced will take four to five years to start production. Therefore, it is important to add more capacity now to keep pace with the country’s growing steel needs,” Acharya said. he said.
Roadmap to 50 mtpa target
JSW Steel, India’s largest steel producer in terms of local capacity, aims to reach an annual domestic steel production capacity of 50 mt by 2030; This amounts to nearly one-third of the total steel consumed by India in FY25.
JSW Steel currently has a pipeline that will reach 41.9 million tonnes (mtpa) by FY28 at 34.2 mtpa. The upcoming electric arc furnace (EAF) project at Kadapa in Andhra Pradesh will increase the capacity to 42.9 mtp per annum by FY29. Beyond this, the company is considering options to expand capacity at its existing facilities at Vijayanagar, Bhushan Power & Steel (BPSL) and the DRI plant at Salav in Maharashtra, as well as a large greenfield steel plant in Paradip, Odisha.
Progress on POSCO joint venture
JSW Steel’s 50-50 joint venture with South Korean steelmaker POSCO is progressing steadily as land identification and certification work continues in Odisha.
The two steelmakers announced plans to set up a 6 mt per annum capacity plant in August, possibly in Odisha. This will be POSCO’s third attempt to enter the Indian market. The two companies plan to spend together ₹70,000-80,000 crore ($8-9 billion) for the installation of the facility, Mint had previously reported.
“We are looking at options for pieces of land in Odisha depending on proximity to iron ore, city and port,” Acharya said, adding that the 900-acre land will be sold by Resources Pvt. He added that he acquired it through the acquisition of a company called. Ltd could be one of the options. The company aims to complete the land within the next six months and will then take action for environmental and forest clearance before starting the project.
He said POSCO brings strong technological capabilities. Acharya said the South Korean steelmaker had failed to build a greenfield site in its previous attempts, but JSW Steel “will bring here the expertise of the local entity and the ability to achieve project implementation faster.”
Policy support and trade protection
JSW Steel’s CEO said that apart from the safeguard duty proposed by the Directorate General of Trade Remedies (DGTR), additional trade safeguards are needed to protect domestic producers from dumping, especially as India continues to account for a large share of global steel demand growth.
The steelmaker expects the finance ministry to get approval for the three-year protection by November. DGTR has proposed a graduated rate for imports of hot-rolled flat products of unalloyed and other alloy steel: 12% for the first year, 11.5% for the second year and 11% for the third year.
“Other trade measures that may support such protection available for products through anti-dumping or nationwide or any other trade action process,” Acharya said.
He said the call for policy support was in line with various countries’ responses to ongoing trade conflicts. For example, the EU (European Union), which has country-based import quotas, suggested reducing the quotas and increasing import taxes. Acharya said trade restrictions by some key markets such as customs duties, quotas and import duties could lead to diversion of steel shipments to India.
“We are the fastest growing economy in the world and hence the underlying demand in the country is high and there are many who look at India as an opportunity,” Acharya said, suggesting that India as a country should allow trade but not dumping.
