Mild Steel News Today

India's steel prices faced pressure in FY2025/26, with a 2% index decline. However, production surged 11% to 168MT, consumption rose 7%, and exports increased 30%, supported by policies despite global headwinds.

Emkay prefers SAIL, Jindal Steel, and Vedanta in metals, citing geopolitical tensions boosting domestic steel prices (HRC up 16%, rebar 22% YTD) and aluminium ($3,200-$3,500/tonne). Outlook is neutral-to-positive despite Nifty Metal's 11% correction.

The government launched a Cost Escalation Compensation Mechanism for National Highway projects from April 2026. It reduces WPI lag from three to one month, enabling monthly payments for fuel, bitumen, steel, and cement costs, improving cash flow and preventing project delays.

The Indian structural steel market is witnessing a strong rally, with [MS Beam and Channel prices] trending toward ₹61,000/MT. Driven by a ₹12.2 lakh crore government capex push and supply disruptions in the LNG-reliant secondary sector, the market remains undersupplied. Short-term expectations are bullish, as domestic producers leverage high infrastructure demand and restricted imports to maintain firm pricing.

The Indian zinc market is currently navigating a period of constructive consolidation. While global macro-sentiments provide a neutral backdrop, domestic consumption remains high due to aggressive infrastructure and automotive growth. With the government’s continued focus on long-term structural projects, the demand for galvanized steel remains a significant tailwind, keeping refined zinc premiums stable across major Indian industrial hubs.

The Indian steel pipe market is entering Q2 2026 with a distinct bullish bias. Driven by aggressive Jal Jeevan Mission targets and a 52% spike in upstream feedstock costs, prices for DI and MS ERW pipes have seen a structural reset. While supply remains stable for primary brands, secondary mills face margin pressure, ensuring prices stay elevated as infrastructure spending hits a fiscal-year peak.

The Indian TMT market is entering Q2 2026 with strong bullish momentum. Driven by aggressive infrastructure spending and a surge in raw material costs, TMT steel bar rates have seen a structural reset. While primary producers maintain firm quotes near ₹61,000/MT, secondary mills are grappling with high energy costs, ensuring prices remain elevated despite the approaching monsoon season.

India's industrial activity picked up in Feb'26, with crude steel up 11%, auto sales up 22%, and IIP growing 5.2%. However, the West Asia crisis threatens March momentum, raising costs and disrupting supply chains.

India's steel market in 2026 is projected to be balanced, with demand slightly exceeding supply. Domestic consumption will absorb most output, leading to declining imports and modest export growth, driven by infrastructure investment.

Steelmakers face rising costs from fossil fuel price volatility, with DRI capacity growing 60 MTPA by 2030. Renewable energy PPAs offer stable input costs and reduced emissions, increasing their investment appeal.