The shares of metal companies recorded notable gains on July 21, amid buzz over China's mega $167-billion dam project in Tibet. The sharp rise in the share prices pushed the Nifty Metal index up nearly 1 percent to hover around 9,545 in the afternoon.
The rise was fuelled by several factors. China's dam project boosted metal prices, with iron ore and steel prices climbing to record highs. Additionally, the project may have boosted hopes for reduced dumping of cheap Chinese metals on the Indian market, which may significantly benefit the Indian players in the industry.
Chinese Premier Li Qiang had launched the construction of the hydropower project on the Yarlung Tsangpo river on Saturday. The cost of the project is also four times larger than the $37-billion Three Gorges project that was completed in 2009. According to analysts, the project promises strong economic jolt for sectors like construction, cement and steel.
The shares of Chinese metal companies significantly surged after the launch of the dam project. India has however raised concerns over the possibility of reduced water flow into River Brahmaputra as a result of the dam.
Notably, Indian metal companies have called for strong anti-dumping duties on cheap Chinese imports for a long time now. The possibility of Chinese metal output being absorbed within the country amid higher demand during the construction of the dam may have boosted the Indian metal stocks, along with the rising metal prices.
Jindal Stainless Steel (JSL) shares jumped nearly 4 percent to trade at Rs 702 apiece, while those of National Aluminium Company (NALCO) also gained nearly 4 percent to trade at Rs 195 apiece. Vedanta, Hindustan Zinc and Hindustan Copper shares gained over 2 percent each.
APL Apollo Tubes shares rose nearly 2 percent, while Hindalco shares were up over 1 percent. NMDC and Adani Enterprises were up nearly 1 percent, while Steel Authority of India (SAIL), Tata Steel, Welspun Corp and Jindal Steel and Power shares were trading in the green with marginal gains.
Bucking the trend, JSW Steel shares were down nearly 1 percent to hover around Rs 1,027 apiece. This comes despite the firm reporting a 155 percent surge in net profit to Rs 2,209 crore for the quarter ending June 30, 2025. Revenue from operations rose marginally on-year to Rs 43,147 crore, but fell sequentially from Rs 44,341 crore reported in the previous quarter (Q4).
"While finished steel imports have moderated, exports have fallen as well and India continues to be a net importer. Low priced imports remain a concern, accentuated by changes in global trade flows due to rising tariff uncertainties. While there has been some reduction in steel production in China in recent months, the elevated Chinese exports continue to be a challenge for the industry," JSW Steel said in a release.
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(With inputs from Bloomberg)
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