- India’s pig iron exports triple y-o-y in Jan-Jul’26, tightening spot supply
- Higher met coke, coking coal prices increase pig iron production costs
Indian steel-grade pig iron prices strengthened through August, with BigMint’s Durgapur benchmark rising by around INR 800/t m-o-m to INR 38,600/t from INR 37,800/t in July. Prices continued to firm through the month, climbing from INR 38,400/t on 1 August to INR 39,500/t by 29 August, the highest level seen since April 2026.
Robust exports tighten supply, prop up prices
According to BigMint data, India’s pig iron exports increased by over 200% y-o-y to 1 million tonnes (mnt) in January-July 2026 compared to 0.32 mnt in the year-ago period. In July, pig iron exports stood at around 375,800 t, rising sharply from the 0.12 million tonnes (mnt) shipped in June and 0.21 mnt in May.
Strong realisations in export markets, particularly the US and Turkiye, have pulled material away from the domestic market, tightening local availability even as finished steel prices trend higher.
In early August, production costs were estimated at around INR 35,000/t ($368/t), with domestic sales generating margins of roughly INR 3,000-4,000/t ($32-42/t). Export sales offered an additional premium of INR 1,000-1,500/t ($11-16/t), which encouraged producers to prioritise overseas shipments.
Eastern India’s pig iron production is estimated at around 12,000-15,000 t/day under normal operating conditions. However, around 3,000-4,000 t/day of supply could be unavailable in the coming days due to maintenance and lower domestic offerings as some producers focus on exports. This is expected to keep supply tight in the eastern market.
Rising met coke costs support price rise
Rising input costs have added further support. Met coke prices increased by INR 500/t to a monthly average of INR 35,850/t in August from around INR 35,350/t in July, with the latest assessment on 26 August at INR 37,000/t, up INR 1,200/t w-o-w. Higher coking coal and coke costs have pushed up smelting costs for pig iron producers, encouraging firmer offers despite selective buying.
Limited availability of scrap supports pig iron demand
A parallel shortage in alternate metallics is also lending support. Melting scrap (HMS 80:20, DAP Mandi Gobindgarh) prices also rose by INR 1,800/t m-o-m to a monthly average of INR 36,300/t, with the latest assessment on 29 August placing prices at INR 39,400/t.
India’s ferrous scrap imports fell sharply by 50% y-o-y to 2.33 million tonnes (mnt) in H1CY’26, according to BigMint data. Imports dropped to their lowest level in five years, last seen during the pandemic in H1CY’21, as domestic scrap remained much cheaper while mills ramped up alternative metallic usage at the expense of scrap.
The sharp increase in scrap costs made pig iron a relatively attractive input for producers. Stronger downstream demand also supported prices. Billet prices rose by around INR 1,350/t m-o-m to INR 39,500/t which kept overall metallic consumption firm, strengthening pig iron demand even as buyers remained wary of engaging at elevated price points.
Outlook
BigMint expects pig iron prices to climb further in September, supported by sustained export demand in the US and Turkiye, tight domestic scrap availability, and firm coal and met coke costs. Continued strength in finished steel prices is likely to keep producer offers elevated, though a pick-up in scrap supply (potentially driven by an improvement in imports with the cost advantage of domestic scrap narrowing) could cap sharp upside.
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