Nifty Metal Surges Over 4% As China Announces Cut in Steel Production

Nifty Metal closed in the green, climbing over 4 per cent on March 5, 2025, following China’s announcement on restructuring of its steel industry to slash its total output to tackle overcapacity. 

This move is expected to lower the dumping of cheap steel to India by China, which may translate as a boost for Indian steel companies.

China, the world's largest steel producer and consumer, has plans to rejig the steel industry through output reduction, according to a report by Reuters.

"We will introduce policies and measures for resolving structural problems in key industries and end the phenomenon of rat-race competition through industrial regulation and upgrading," Reuters said in its report.

Meanwhile, China has estimated a growth projection of 5 per cent for its GDP for 2025, the same as last year.

Indian Steel Stocks Gain

Welspun Corp share price closed in the green, up 7.03 per cent to Rs 747.7 on March 5.

The stock of Welspun Corp had hit a 52-week high of Rs 835 on January 3, 2025, on the NSE. The company enjoys a market capitalisation of Rs 19,619.80 crore. It is trading around 71 per cent above its 52-week low of Rs 440.15 on June 4, 2024, on the NSE.

The price of Jindal Stainless closed in the green, up 3.45 per cent, on March 5. The stock price rose by over 8 per cent from its 52-week high of Rs 568.05 on February 17, 2025. The company had hit a 52-week high of Rs 848 on July 9, 2024.

APL Apollo Tubes shares closed in the green, up 2.84 per cent on March 5, according to NSE. The company enjoys a market capitalisation of Rs 40,879.37 crore. It is currently trading over 16 per cent from its 52-week low of Rs 1,272.70 on February 17, 2025. The company hit its 52-week high of Rs 1,728.95, on May 22, 2024.

China’s Stance On US Tariffs

China on March 4, 2025, also announced retaliatory tariff on US goods followings US trade tariff impositions on other countries.

According to media reports, additional tariffs of up to 15 per cent will be implemented on US Farm products including chicken, pork, soy and beef, expected to be effective from March 10, 2025.

Previously, US President Donald Trump had ordered tariffs on imports of Chinese goods to be increased to 20 per cent, which came into effect on March 4.

Earlier this year, Trump hinted on imposing up to 25 per cent tariff on all steel, pharma and aluminium imports from countries including India.