Indian steel prices showed mixed trends during the week ended June 26, according to Nomura's latest weekly steel report. Domestic hot-rolled coil (HRC) prices declined marginally by Rs 50 per tonne on a week-on-week basis to Rs 58,200 per tonne, while rebar prices fell by Rs 850 per tonne to Rs 51,150 per tonne, marking their lowest level in the current calendar year.

Despite the recent correction, Nomura believes the pricing environment for flat steel products remains relatively resilient, reflecting stronger demand dynamics compared with long steel products. The brokerage expects Indian steel producers to benefit from price increases implemented during the latter part of FY26 and the beginning of FY27.

According to the brokerage, these price hikes are sufficient to offset any cost pressures arising from higher input costs linked to geopolitical developments in West Asia. As a result, Nomura expects domestic steel companies to report sequential improvement in EBITDA per tonne during the first quarter of FY27.

Maintaining a constructive outlook on the sector, Nomura reiterated its Buy ratings on Tata Steel, JSW Steel, Jindal Steel and Lloyds Metals & Energy, citing improving profitability and favourable domestic pricing.

Globally, steel prices remained largely stable during the week. Chinese export HRC prices were unchanged, while domestic HRC prices in China edged lower. European HRC prices also remained stable at relatively elevated levels. On the raw material front, global iron ore prices eased slightly to around $92 per tonne, whereas imported coking coal prices remained broadly steady at approximately $244 per tonne.

Nomura also highlighted the UK's decision to tighten steel import safeguards from July 1 by reducing tariff-free import quotas by 51% and imposing a 50% tariff on imports exceeding those quotas. The brokerage believes these measures will benefit regional steel producers, including Tata Steel, which has a significant presence in the UK market.

However, the brokerage cautioned that China's property sector continues to face structural weakness despite signs of stabilisation in select Tier-1 cities, limiting the prospects of a broad-based recovery in global steel demand.