The 2026 Union Budget has maintained the aggressive capital expenditure target of ₹11.11 Lakh Crore. For the steel sector, this signals a "Super-Cycle" of demand.
Key Sectors Driving Demand
- PM Awas Yojana (Urban): The target to build 1 Crore houses will create a shortage in TMT Bars (8mm - 25mm).
- Railway Corridors: New dedicated freight corridors require massive quantities of Heavy Structurals (Beams/Columns) for bridges.
Market Forecast: Price Hardening
With domestic consumption projected to grow by 8-10%, we advise clients to move from "Spot Buying" to "Quarterly Contracts." We anticipate a price correction of +5% to +7% in Long Products by Q2 2026 due to coking coal constraints.