JP MORGAN ON STEEL
• Cost pressures persist; reiterates selective stance on the sector.
• Domestic HRC prices have started rising, but spreads remain largely flattish.
• Surprised by sharp rally in SAIL; recent cost escalation likely to weigh on profitability due to higher coke rate vs peers.
• Expects steel prices to remain range-bound for now.
• Sees gradual recovery in spreads after festive season.
• JSW Steel remains preferred pick.
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