The domestic steel sector is entering the second half of FY27 on a stronger pricing footing, with steel prices holding firm despite seasonal weakness in demand. According to Motilal Oswal Financial Services (MOFSL), the recent rally in steel prices is being driven by a combination of lean channel inventories, maintenance-related supply constraints, resilient domestic consumption and higher input costs. The brokerage expects the domestic steel cycle to shift from a volume-led recovery towards pricing- and cost-led earnings growth.
The improvement in steel prices is mainly attributed to cost pass-through mechanisms, as input costs have simultaneously increased. As reported by MOFSL, the premium Australian coking coal price has risen to $300/t from $260/t in June 2026, implying that every $10/t increase in coking coal adds $7-8/t to input costs, creating a margin headwind. Iron ore and pellets prices also remained firm during the muted demand cycle, with lean inventories, constrained supply, resilient underlying consumption, and global cost inflation providing the foundation for higher steel prices.
Domestic HRC prices have risen 7 per cent month-on-month to ₹62,000 per tonne in September 2026, marking a four-year high, while CRC prices have increased 8 per cent to ₹70,500 per tonne, as per MOFSL. Rebar prices have also recovered sharply to ₹56,800 per tonne from ₹48,850 per tonne in June, pointing to broad-based strength across both flat and long steel products. Latest market data shows HR prices trading in the ₹1,200-₹1,280 per tonne range, CRC at ₹1,460-₹1,500 per tonne, and GI products at ₹1,450-₹1,500 per tonne.
JSW Steel shares closed at ₹1,253.40 on September 17, gaining ₹4.50 or 0.36% with a trading range of ₹1,242-₹1,260. The stock maintained its position above the 200-day moving average of ₹1,228.40 but remained below the shorter-term 50-day and 100-day DMAs at ₹1,284.20 and ₹1,267.40 respectively. With a market capitalisation of ₹3,06,513 crore, JSW Steel has delivered a 12.39% return over one year, though shorter-term performance remains mixed with negative returns for one month (-1.31%) and three months (-1.64%). The stock's 52-week range spans from ₹1,073 to ₹1,351, with current trading ₹180.40 above the annual low and ₹97.60 below the high.
