Shares of metal producers and miners rose on October 12, with steel companies leading the gainers in the Nifty Metal index. At 11:10 am, the sectoral index was trading 0.4% and rose for the second consecutive session. The rise in shares of steel companies follows a draft steel policy released for public consultation late Saturday, which targeted 604 million tonnes of steel capacity by 2047 from around 220 million tonnes at present.
The steel ministry expects iron ore demand at 772 million tonnes and plans to secure access to high-grade reserves by pursuing foreign assets and joint ventures, according to the document. The ministry expects coking coal demand to reach 236 million tonnes, with the government planning to diversify its sourcing via "strategic global outreach" and acquire overseas assets, as per the document. Additionally, the consultation paper also lays out the plan to cut the steel sector's average carbon-emission intensity to around 1.54 tonnes of carbon dioxide per tonne of crude steel by 2047 from the current 2.54 tonnes.
Shares of Steel Authority Of India, Hindustan Zinc, Vedanta Aluminium Metal were among the top performing stocks of the Nifty Metal index. Among large-cap companies, shares of Tata Steel and JSW Steel traded around 1.4% higher each, after rising as much as 2.5% in early trading Monday.
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.