loader2
Login Open ICICI 3-in-1 Account
  • Text Size
  • Text to Speech
  • Color Contrast
  • Pause Animations

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

Domestic steel prices reached 4 years-high, largely driven by higher input cost

ICICIdirect Research 25 Sep 2026 DISCLAIMER

As per media sources, the domestic steel prices have reached a four-year high, with HRC prices at ~₹64,000/tonne and CRC at ~₹73,500/tonne, reflecting a ~₹5,500/tonne MoM increase in Sep’26.
The recent price hike has been largely driven by higher coking coal costs, which increased by ~$50/tonne to ~$280/tonne from ~$230/tonne in Aug’26, amid supply concerns globally.
Accordingly, the recent steel price increase is expected to largely offset higher input costs and protect operating performance, rather than driving a meaningful expansion in EBITDA margins.
Thus, we remain positive on the domestic steel sector, with Tata Steel as our preferred stock pick in this space.
We maintain BUY rating on Tata Steel with SOTP-based target price of ₹240 (7.25x/4x EV/EBITDA to India/Europe business on FY28E), supported by its strategic capacity expansion in Indian operation and focus on cost savings across regions.
Also, we have a BUY rating on Jindal Steel and SAIL with a target price of ₹1,220 (9x EV/EBITDA on FY28E) and ₹225 (6x EV/EBITDA on FY28E).

Download
ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download
ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere