Indian Metal Sector: Market Brief February 2026 The Indian metal sector is maintaining a robust growth trajectory as of mid-February 2026. The Nifty Metal Index reached **11,985.75** on February 18, reflecting a steady **3.06%** gain over the last month and a remarkable **46%** surge over the past year. This performance significantly outpaces the broader benchmark indices, driven by a combination of domestic policy support and a stabilizing global demand outlook. Steel Sector Dynamics Steel stocks are leading the rally, with major players like Tata Steel and JSW Steel gaining between **1% and 2%** in recent intraday sessions. Domestic Hot-Rolled Coil (HRC) prices are currently averaging approximately **₹50,500** per ton. Market sentiment is bolstered by a **12% safeguard duty** implemented in late 2025, which has successfully shielded domestic producers from cheap imports and allowed for a price realization increase of roughly **₹3,500** per ton quarter-on-quarter. Demand is projected to grow by **9%** through 2026, fueled by aggressive infrastructure spending and a resurgent automotive sector. Non-Ferrous and Strategic Metals Non-ferrous producers are benefiting from a recovery in global commodity prices. Aluminum rose to **$3,084.50** per ton this week, marking a **14.93%** increase compared to last year. In the domestic scrap market, copper is trading at approximately **₹1,250** per kg for high-grade variants, while Zinc-Hindustan rates are holding firm at **₹347** per kg. A weaker rupee continues to provide a competitive edge for exporters, while limited global supply caused by energy-related smelter disruptions in other regions is keeping local inventories tight and prices elevated. Policy and Long-term Outlook The Ministry of Steel has recently reaffirmed its goal to reach a crude steel capacity of **300 million tonnes** by 2030. Current efforts are focused on a "Green Steel" transition, with the government introducing incentives for scrap recycling and low-carbon production technologies. Operating margins for the sector are stabilizing around **12.5%**. While raw material costs—specifically coking coal—showed some volatility early in the year, the current quarter remains seasonally strong for volume growth. Investors are closely watching the upcoming 2026 industrial roadmaps which emphasize digital integration and domestic value addition to reduce reliance on high-grade alloy imports.