Iron & Steel Industry Playbook
Part of the Metals & Mining sector This playbook covers the Iron & Steel subindustry within the Metals & Mining sector. It provides a focused framework for a...
Part of the Metals & Mining sector
Industry Overview
This playbook covers the Iron & Steel sub-industry within the Metals & Mining sector. It provides a focused framework for analysing and valuing companies in this specific segment of the Indian market.
What you will learn
- Industry Overview: How Iron & Steel companies operate — business models, revenue drivers, and key players in India
- Key Metrics: The 4-5 financial metrics that matter most for evaluating Iron & Steel companies
- Competitive Landscape: Market structure, entry barriers, pricing power, and moat analysis for Iron & Steel
- Risks & Red Flags: What can go wrong — regulatory, cyclical, and company-specific risks in Iron & Steel
- Valuation Framework: How to value Iron & Steel companies — appropriate multiples, benchmarks, and peer comparison
Quick navigation
| Lesson | Focus |
|---|---|
| Industry Overview | How Iron & Steel companies operate — business models, revenu... |
| Key Metrics | The 4-5 financial metrics that matter most for evaluating Ir... |
| Competitive Landscape | Market structure, entry barriers, pricing power, and moat an... |
| Risks & Red Flags | What can go wrong — regulatory, cyclical, and company-specif... |
| Valuation Framework | How to value Iron & Steel companies — appropriate multiples,... |
Start here
Begin with the Industry Overview to understand the basic business model, then use Key Metrics to build your screening criteria.
1. Iron & Steel — Industry Overview
Iron & Steel (Metals & Mining sector)
What you will learn
How integrated and secondary steel producers operate in India — from ore-to-steel value chain, revenue models (flat vs long products), capacity utilisation economics, and the role of government policies like PLI and anti-dumping duties.
Core framework
Content source
This lesson framework is populated from AI sector research data for Iron & Steel. Live metrics and company comparisons are available on the entity page.
Business model segments
| Segment | Revenue share (typical) | Key economics |
|---|---|---|
| Flat products (HRC, CRC, plates) | 45-55% | Higher realisation, auto/appliance demand linked |
| Long products (TMT, wire rod, structurals) | 30-40% | Infra & housing demand, seasonal patterns |
| Value-added / coated products | 10-20% | Premium ₹5,000-8,000/tonne over base steel |
| Pellets & pig iron (captive surplus) | 5-10% | Sold when internal demand is lower |
Key players — India
| Company | Capacity (MTPA) | Model | Strengths |
|---|---|---|---|
| Tata Steel | ~35 (global) / ~21 (India) | Integrated (ore + coal mines) | Lowest-cost producer, Jamshedpur captive ore |
| JSW Steel | ~28 | Primarily BOF, some EAF | Highest capacity utilisation (>90%), flat-product focus |
| SAIL | ~21 | Fully integrated PSU | Five integrated plants, captive ore & coal |
| Jindal Steel & Power | ~10 | Integrated + pellet surplus | Angul expansion, strong in rails & structurals |
| AMNS India (ArcelorMittal-Nippon) | ~9 | Integrated (Hazira) | Global technology, flat-product specialisation |
Revenue model & cost structure
Unit economics rule of thumb
Steel EBITDA/tonne = Realisation/tonne − (Raw material + Conversion cost + Freight). Indian integrated players target ₹8,000-15,000 EBITDA/tonne through the cycle.
| Cost component | % of total cost | Key driver |
|---|---|---|
| Iron ore | 25-30% | Captive vs merchant; NMDC price benchmark |
| Coking coal | 25-35% | Imported (Australia); FX & freight sensitive |
| Power & fuel | 8-12% | Captive power plants reduce this |
| Conversion & labour | 12-15% | Automation, scale |
| Freight & logistics | 8-10% | Proximity to port or consumption centre |
Indian context & demand drivers
🗣️
"India mein steel ka future infrastructure se judha hai — har road, bridge, aur building mein TMT bar aur plate lagti hai."
- India is the 2nd largest crude steel producer globally (~140 MTPA capacity in FY24)
- Government's National Steel Policy targets 300 MTPA by 2030
- Per-capita consumption still low (~90 kg vs global avg ~230 kg) — huge runway
- Key demand: Construction (60%), auto (10%), capital goods (8%), consumer durables (5%)
- PLI scheme for specialty steel (₹6,322 crore outlay) incentivises value-added production
What to check next
- Explore company-level data on the Screener
- Read the parent sector playbook
- View AI research insights for live analysis
2. Iron & Steel — Key Metrics
Iron & Steel (Metals & Mining sector) The 56 financial and operational metrics that drive steel company valuations — EBITDA/tonne, capacity utilisation, net...
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3. Iron & Steel — Competitive Landscape
Iron & Steel (Metals & Mining sector) Market structure, entry barriers, pricing power, and moat analysis for Iron & Steel — why only 56 players control 55%+...
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4. Iron & Steel — Risks & Red Flags
Iron & Steel (Metals & Mining sector) What can go wrong — cyclical downturns, China dumping, raw material shocks, regulatory risks, and companyspecific red f...
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5. Iron & Steel — Valuation Framework
Iron & Steel (Metals & Mining sector) How to value steel companies — EV/EBITDA as the primary metric, throughcycle normalisation, EV/tonne for asset replacem...
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