Nomura has maintained its positive outlook on the Indian steel sector, saying domestic steelmakers are well positioned to benefit from price hikes implemented in the first half of FY27, which should be sufficient to absorb raw material cost inflation.
The brokerage maintained its 'Buy' recommendation on Tata Steel, JSW Steel and Jindal Steel
Domestic hot-rolled coil (HRC) prices rose Rs 700 per tonne week-on-week to Rs 64,700 per tonne in the week ended October 9, remaining elevated near their highest levels in four years. Rebar prices increased Rs 900 per tonne to Rs 63,800 per tonne, extending their recovery and marking a renewed uptrend after moderating since the first quarter of FY27.
The domestic flat-long steel price differential narrowed to around Rs 900 per tonne in favour of long products as rebar prices gained momentum. India's HRC spot margin stood at around Rs 39,110 per tonne in October 2026, up around Rs 3,000 per tonne quarter-on-quarter from Q2FY27 and Rs 1,600 per tonne month-on-month.
In China, export HRC prices remained unchanged week-on-week at $510 per tonne, while domestic HRC prices declined $3 per tonne to $490 per tonne. Export margins improved $5 per tonne to $207 per tonne, while domestic margins rose by the same amount to $130 per tonne as global and domestic coking coal prices eased.