- Tight supply, high raw material costs support stable base prices
- Buyers remain selective, limit purchases at current levels
In NMDC’s latest pig iron auction conducted on 5 September 2026, 3,000 t out of the 7,000 t offered was booked at a base price of INR 38,500/t ex-works, unchanged from the previous auction. In the previous auction, 3,900 t out of 10,000 t offered was booked at an average of INR 38,500/t ex-works. The lower booking ratio indicates cautious buying interest, with buyers showing limited willingness to increase procurement at prevailing price levels.
Buyer caution limits offtake
The decline in booked quantity highlights subdued buying interest despite prices remaining firm. While tight availability and elevated replacement costs continue to support seller price expectations, buyers appear selective and are limiting purchases at current levels. Overall, the market remains firm but cautious.
Raw-material costs continue to rise
Raw-material costs have strengthened further, increasing production and replacement costs for pig iron producers. BigMint’s coking coal index increased by $19/t w-o-w to $299/t, while met coke, ex-Jajpur, India (25-90 mm, blast furnace-grade) increased by INR 3,000/t w-o-w to INR 40,000/t. The rise in key steelmaking inputs is providing continued cost-side support to pig iron prices and limiting scope for significant price corrections.
Leave a Reply