India: NMDC sets higher base price at latest pig iron auction, offtake weakens

• Bookings fall amid buyer resistance to higher prices
• Export economics support higher domestic offers

In NMDC’s latest pig iron auction conducted on 1 September 2026, 3,900 t out of the 10,000 t offered were booked at a base price of INR 38,500/t ex-works, which was higher by INR 650/t from the previous auction. On 22 Aug 2026, the entire 10,000 t offered were sold at an average price of INR 37,850/t. The higher base price indicates continued firmness in seller expectations, although the significantly lower booking reflects growing buyer resistance at elevated levels.

Buyer resistance limits offtake

The sharp decline in auction bookings highlights increasing price sensitivity among buyers. While tight availability and firm raw material costs continue to provide support, buyers appear less willing to chase higher prices. Overall, sentiment remains firm but cautious, with further upside likely to depend on continued supply tightness and export parity.

Export economics support domestic offers

The auction outcome comes against a backdrop of relatively attractive export realisations, encouraging producers to favour overseas shipments and limiting material availability in the domestic market. With fewer spot volumes available locally, sellers continue to have stronger pricing power, despite buyers remaining cautious.

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. Export sales offer an additional premium of around INR 1,000/t, which encouraged producers to prioritise overseas shipments.

Pig iron exports stood at around 375,800 t in July. 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.