- Exports and maintenance shutdown support prices
- Auction sentiment improves on tighter spot availability
India’s pig iron market remained largely stable in July 2026 despite sluggish downstream steel demand, as robust export bookings, maintenance shutdowns and tight spot availability offset weak domestic consumption. Procurement by steelmakers and foundries remained largely need-based amid the monsoon-led slowdown, while lower-priced sponge iron and steel scrap continued to limit pig iron purchases. According to BigMint, Durgapur steel-grade pig iron prices remained broadly stable at INR 37,840/t in July compared with INR 37,861/t in June.
Raw material costs ease, ADD announced
Raw material prices softened during the month, providing partial cost relief to producers. Premium hard coking coal prices declined by around $14/t m-o-m to $251/t CFR Paradip, while merchant BF-grade met coke prices fell by around INR 1,260/t to INR 35,340/t ex-Jajpur. However, integrated producers largely refrained from fresh purchases due to comfortable inventories, while elevated production costs continued to discourage aggressive price reductions. During the month, the government also imposed definitive anti-dumping duties on low-ash metallurgical coke imports from six countries. Exemptions for blast furnace pig iron producers using specified grades are expected to limit the immediate impact on merchant pig iron production.
Substitute metallics prices decline
Lower-priced metallic substitutes continued to pressure pig iron demand. HMS 80:20 scrap prices declined by 2.5% m-o-m to INR 33,966/t, while Durgapur sponge iron prices fell by 2% to INR 23,144/t, widening pig iron’s premium over scrap to nearly INR 3,874/t. Even so, the established 70:30 metallic charge mix in eastern India continued to support baseline pig iron consumption.
Auctions reflect tighter availability
Auction sentiment strengthened during July as supply tightened. SAIL conducted six auctions, offering 44,940 t, of which 25,540 t was sold, while NMDC sold its entire 18,000 t offering across four auctions. Bid prices strengthened from an average of INR 36,100/t to INR 38,000/t before easing marginally to INR 37,350/t, reflecting export parity and tighter domestic availability.
Regional market trends
Eastern India remained the strongest market as export shipments, inter-state dispatches and sizeable domestic bookings tightened availability despite weak local demand. South India witnessed a price increase of around INR 1,000/t m-o-m, supported by export commitments and restricted supplies. Raipur prices gained around INR 1,600/t on stronger billet and sponge iron demand, while Raigarh saw a correction after mid-month highs as nearby supplies improved. In north India, steel-grade pig iron prices declined due to increased availability of lower-silica material from the east, although foundry-grade prices remained broadly stable amid healthy demand and limited spot availability.
Outlook
Pig iron prices are expected to remain broadly stable in the near term. Ongoing export negotiations, maintenance-related supply constraints and controlled spot availability are likely to support producer realisations. However, weak steel demand during monsoons and the cost advantage of sponge iron and scrap are expected to keep domestic procurement need-based, limiting any significant price increase unless downstream steel demand improves.
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