[SMM Hot Topic] Adjustment of Price Spreads for Certain Specifications and Dimensions of Circulating Steel Mills in Shaanxi Market

[SMM Steel] India’s push toward green steel faces significant practical challenges despite strong policy ambitions. Scrap-based production via EAF/IF is seen as the most viable near-term pathway, but logistics disruptions, high freight costs, and reduced scrap exports from Europe are tightening supply conditions. Moreover, scrap alone cannot meet the requirements for high-grade flat steel production, limiting its role in full decarbonisation. While hydrogen-based DRI offers long-term potential, adoption remains limited. As a result, most new capacity still relies on coal-based production, indicating that India’s green steel transition will likely remain gradual, dependent on improvements in scrap supply chains and clean energy availability.

[SMM Steel] JSW Steel and JFE Steel Corporation have officially formed JSW JFE Steel Limited, a 50:50 joint venture focused on an integrated steel plant in Odisha. The project, finalized on March 30, 2026, has an annual crude steel capacity of 4.5 mln mt and will produce both flat and long products for automotive and construction sectors. Backed by JFE’s investment of ~JPY 270 bn, the JV aims to capitalize on India’s strong demand growth, leveraging proximity to iron ore resources and established logistics to enhance cost efficiency and secure raw material supply.