The domestic steel market rebounded in January 2026 after falling to five-year lows in November and December, driven by stronger demand for rebar and HRC. As a consequence of the safeguard duty on imported steel, primary mills have experienced a series of price increases across both flat and long products, thereby restricting available supply and supporting domestic pricing. The price of HRC and CRC was assessed at ₹53800 and ₹59700 per tonne increased by ₹300 and ₹600 per tonne, respectively, on a weekly basis.

Rising raw material costs, especially coking coal, iron ore, pellets, sponge and pig iron, have all increased production costs substantially while strong demand from infrastructure and construction has driven healthy levels of offtake. Primary mills have seen their inventories reduce by 15–20%, with some mills almost fully committed to projects, and therefore, selective in their availability of product to current projects.

Looking forward to February, we expect the domestic steel market to be firm. With the safeguard duty in place to protect the domestic steel market from dumping and ongoing high raw material costs, there is an expectation that the mills have might increase prices, particularly for HRC. Inventories remain low, and trade activity has been improving since the recently finished holiday season. There appears to be positive sentiment for peak season based on historical patterns. Therefore, we expect continued support for steel prices in the near term. However, the sustainability of demand for steel and any reduction in raw material costs will be key variables that we will continue to monitor.