Tata Steel stock has been climbing steadily in 2025, and a fresh development in its ambitious green steel project in the UK has given it another boost. Investors appeared optimistic again on Wednesday morning as shares moved up following a key contract announcement for the company’s £1.25 billion Port Talbot transition.
Tata Steel opened the day at ₹160.10 on the BSE and was trading slightly higher at ₹161.15 around 9:30 am, giving it a market cap of ₹2.01 lakh crore. This builds on a roughly 16% gain in its share price since the beginning of the year.
UK Green Steel Project Hits Fresh Milestone
A local Welsh firm has landed a key contract in Tata Steel’s push to modernise its Port Talbot steelworks in South Wales. The company, Systems Group from Maesteg, will handle the first phase of refurbishing two of the plant’s continuous casters — a crucial part of the steel production line.
This structural upgrade is one of the first concrete steps toward Tata’s green steel transformation. It’s not just patchwork; it’s laying the foundation for an overhaul of the way steel is made at the site. Systems Group will replace critical pipework and other structural components tied to the casters — machines that turn molten steel into solid slabs.
It’s more than just mechanics. This marks a symbolic start to Tata Steel’s transition from carbon-intensive production to a cleaner, more sustainable model.
From Molten Metal to Low-Carbon Future
The bigger picture? Tata Steel is aiming to bring a brand-new electric arc furnace (EAF) online by the end of 2027. That’s the core of its UK decarbonisation vision.
These EAFs use electricity instead of coke to melt scrap steel. And if you’re wondering how much difference that makes — it’s huge. The company says the switch will slash Port Talbot’s carbon emissions by a staggering 90%, equal to about 5 million tonnes of CO₂ per year.
That’s like taking more than a million cars off the road. Every year.
Ian Ellis, Engineering Project Manager at Tata Steel, was quoted by PTI saying the work ensures the existing casters will be ready to handle steel output from the EAF, both in volume and quality.
Tata Steel’s aim is clear: keep steelmaking alive in South Wales, but make it cleaner, cheaper, and more in line with Europe’s climate targets.
Investor Sentiment: Optimism in Price, Doubt in Ratings
Wednesday’s price action showed that investors were at least somewhat encouraged by the update.
But here’s the twist — not everyone’s buying the rally. In fact, some analysts see a pretty different story unfolding.
According to a July 2 report from Kotak Institutional Securities, the brokerage maintained a ‘Sell’ rating on Tata Steel, slapping a fair value of ₹135 per share. That’s a 16% downside from current levels. So while investors are cheering the green steel news, Kotak’s not impressed enough to change its valuation.
That creates a bit of a disconnect. The market’s clearly feeling some enthusiasm — or maybe just momentum — but not all the smart money is convinced the fundamentals support the rally.
Here’s a quick look at the stock’s recent numbers:
| Date | Open (₹) | Close (₹) | Intraday High (₹) | Market Cap (Cr) |
|---|---|---|---|---|
| July 1, 2025 | 159.50 | 159.95 | 160.35 | 2,01,170.68 |
| July 2, 2025 | 160.10 | – | – | 2,01,170.68* |
(Data Source: BSE)
Local Impact, Global Strategy
For the Welsh town of Port Talbot, the project’s local impact could be massive. It’s not just about jobs — though that matters a lot. It’s also about sending a message that the UK’s steel sector isn’t obsolete. It’s evolving.
Ryan O’Neill, Managing Director at Systems Group, called the contract an important moment not just for the company, but for the region. “We are proud to play a role in helping secure the future of steelmaking in South Wales,” he said.
The partnership with a homegrown engineering firm could also be politically smart. As debates swirl around subsidies and protectionism in global steel trade, local involvement matters — both for public opinion and regulatory goodwill.
Meanwhile, Tata Steel is expected to announce more contracts in the months ahead. These will likely cover other upgrades like electrical systems, mechanical equipment, and process control technologies.
• Systems Group wins first refurbishment contract
• More deals expected for electrical and control systems
• EAF targeted for launch by 2027
The Bigger Economic Context
Steel isn’t just steel. It’s connected to everything from construction and infrastructure to auto manufacturing and defense. Which is why governments watch steel plants like hawks.
The UK government had already pledged financial backing for Tata’s £1.25 billion transition. Though specific subsidy figures aren’t clear, reports suggest that the state could be contributing around £500 million — a hefty sum.
The timing, too, is notable. As Europe doubles down on climate goals, cleaner steel production becomes a competitive edge. Countries that adapt may keep their industrial base; those that don’t might lose it to more climate-forward rivals.
So Tata’s green steel plan isn’t just about Port Talbot or even the UK. It ties into broader shifts in how global supply chains are being rebuilt around sustainability.
It’s about future-proofing — for business, for workers, and for the planet.
