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Steel Stocks Soar: Nomura Recommends 'Buy' on Tata, JSW, Jindal Amid Rebar Rally
- •Nomura maintains 'Buy' ratings on Tata Steel, JSW Steel, and Jindal Steel, citing a positive outlook for the India steel sector.
- •Rebar prices surged by Rs 1,650 per tonne week-on-week to Rs 62,100 per tonne, extending a strong recovery and renewed uptrend.
- •Domestic HRC prices remained stable at Rs 63,800 per tonne, near a four-year high, while the flat-long spread narrowed significantly.
- •India's finished steel production rose 0.3% year-on-year in August, with consumption increasing by 3.9%.
- •Nomura expects the domestic steel industry to benefit from price hikes in 1HFY27F, sufficient to absorb raw material cost inflation.
Key Questions Answered
Nomura has retained its 'Buy' recommendations on Tata Steel, JSW Steel, and Jindal Steel, while maintaining a positive outlook on the Indian steel sector amid strong rebar price rallies and elevated hot-rolled coil (HRC) prices. Domestic HRC prices remained stable at Rs63,800 per tonne, while rebar prices increased by Rs1,650 per tonne to Rs62,100 per tonne in the week ending September 25, 2026.
India's finished steel production rose by 0.3% year-on-year to reach 13.48 million tonnes in August, while total consumption increased by 3.9% to 14.32 million tonnes. During the same period, India remained a net importer of steel, with imports experiencing an 8% year-on-year rise to reach 0.72 million tonnes.
Imported coking coal prices dropped by $6 week-on-week to stand at $276 per tonne, though they remain significantly higher than the August 2026 average of $232 per tonne due to renewed supply concerns. Meanwhile, global iron ore prices have remained stable at approximately $91 per tonne.
