🔼 Why Tata Steel Share Price is Rising in July 2025?
Indian equity markets may be trading lower, but Tata Steel is bucking the trend. On July 2, while the Sensex fell by 393 points and the Nifty slipped by 124 points, Tata Steel emerged as the top gainer on the Nifty index.
Here’s a breakdown of the three main reasons why Tata Steel’s share price is on the rise — and what’s coming next.
🔧 1. Major UK Contract with Systems Group
Tata Steel has finalized a significant refurbishment contract with Systems Group, a Welsh engineering firm. This deal covers upgrades at its Port Talbot steel plant in the UK.
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The project focuses on refurbishing two continuous casters.
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These upgrades are part of preparing the plant for a new electric arc furnace, expected by end of 2027.
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This move supports Tata Steel’s green steel vision, boosting investor sentiment.
📈 2. Broader Rally in Metal Stocks
While most sectors traded lower, metal stocks surged. The Nifty Metal Index rose by 1.16%, with Tata Steel outperforming — gaining over 3% intraday.
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Expectations of strong Q1 FY26 results in the steel sector contributed to the rally.
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Falling prices of iron ore and coking coal are improving profit margins.
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Analysts are bullish on the outlook for Indian steelmakers.
🇨🇳 3. Chinese Steel Production Cuts
There are reports that Tangshan city in China — a major steel hub — has extended production curbs across its 100+ mills due to environmental concerns.
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Global steel supply could be tighter, pushing prices higher.
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Indian metal stocks, including Tata Steel, benefited from this development.
🔮 What’s Next for Tata Steel?
Tata Steel continues to strengthen its position globally and domestically:
🇮🇳 Capacity Expansion in India
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The Kalinganagar plant in Odisha completed its Phase II expansion, increasing capacity from 3 mt to 8 mt.
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Total domestic capacity is now 26.1 million tonnes.
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This will significantly contribute to revenue and margins in FY26.
🌱 Investment in Green Steel
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Tata Steel plans to build a hydrogen-based DRI plant in the Netherlands.
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Goal: Competitive green steel production by 2030.
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Total capex planned: $1.76 billion across India, UK, and Netherlands for FY25–26.
📉 Debt Reduction & Efficiency
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The company has a cost-saving target of ₹11,500 crore for FY26.
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Focused on operational efficiency and debt reduction.
📊 Steel Demand Outlook
India’s steel demand is projected to grow at a CAGR of 8% till 2030, supported by infrastructure growth — directly benefiting Tata Steel.
📉 Recent Performance
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1-month gain: Up 3.5% (₹159 to ₹165)
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1-year change: Down 6.5%
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52-week high: ₹178.15 (July 4, 2024)
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52-week low: ₹122.6 (January 13, 2025)
🏢 About Tata Steel
Tata Steel is one of the world’s most diversified steel producers, with integrated operations across India, the UK, and Europe. Its products serve automotive, infrastructure, engineering, and retail sectors.
The company benefits from vertical integration — from mining to manufacturing — offering it cost competitiveness and quality control.
🚨 Disclaimer
This blog is for informational purposes only and is not a stock recommendation. Please consult with a financial advisor before making investment decisions.
Reference from:-https://www.equitymaster.com/detail.asp?date=07/02/2025&story=8&title=Why-Tata-Steel-Share-Price-is-Rising