Stories
Nomura Recommends 'Buy' on Tata, JSW, Jindal Steel as Prices Hit New Highs
- •Nomura maintains 'Buy' recommendations for Tata Steel, JSW Steel, and Jindal Steel due to strengthening domestic steel prices.
- •Domestic HRC prices reached Rs 63,800/t, a four-year high, and rebar prices rose to Rs 60,450/t in the week ending September 18.
- •The domestic steel industry is well-positioned to benefit from recent price hikes, which are expected to absorb raw material cost inflation.
- •Global steel prices also strengthened, with Europe HRC prices rising to EUR735/t, while imported coking coal remains high at $283/t.
- •India secured a 1.9 million-tonne steel export quota to the EU, with potential access to 2.8 million tonnes annually.
Key Questions Answered
Nomura maintained its 'Buy' recommendations because domestic steel prices continue to strengthen, with hot-rolled coil (HRC) and rebar prices scaling new highs. The brokerage noted that the domestic steel industry is well positioned to benefit from implemented price hikes that easily absorb raw material cost inflation.
In the week ended September 18, domestic HRC prices rose by Rs 1,600 per tonne to reach Rs 63,800 per tonne, marking a four-year high. Meanwhile, rebar prices increased by Rs 2,300 per tonne week-on-week to hit Rs 60,450 per tonne.
India has secured a 1.9 million-tonne country-specific tariff-rate quota for steel exports to the EU, with an additional 0.9 million tonnes potentially available through residual quotas. This brings India's total potential annual access to roughly 2.8 million tonnes, though the Carbon Border Adjustment Mechanism (CBAM) continues to apply within the duty-free quota.
