- Full 7,000 t booking signals strong buyer participation
- Export bookings, maintenance downtime tighten supply
NMDC’s latest pig iron auction held on 11 September 2026 witnessed strong bidding, with the entire 7,000 t offered quantity booked at an average INR 40,100/t ex-works. The auction opened at INR 39,500/t, while bids were concluded in the range of INR 39,900-40,200/t. The average bid price rose by INR 1,600/t from the previous auction. The latest price marks the highest level since 30 April 2024, taking NMDC pig iron prices to a 2-year-and-5-month high.
Previous auction saw limited offtake
In comparison, NMDC’s previous auction on 5 september 2026 offered 10,000 t, of which only 3,000 t was booked at an average price of INR 38,500/t ex-works. The latest auction therefore saw both significantly stronger offtake and a sharp increase in price, indicating stronger buyer participation and tighter availability.
Higher met coke costs add to price pressure
The rise in auction prices was also supported by higher raw material costs. BigMint’s coking coal index increased by $7/t w-o-w to $306/t on 11 September 2026, while met coke, ex-Jajpur, India (25-90 mm, blast furnace-grade), increased by INR 1,500/t w-o-w to INR 41,500/t. The increase in key steelmaking inputs has raised production and replacement costs, creating continued cost-side pressure on pig iron producers and supporting higher offer levels.
Tight availability supports stronger bidding
Meanwhile, pig iron consumption has improved amid stronger finished steel demand, encouraging buyers to secure material despite higher prices. Domestic availability has also remained tight as some producers have committed volumes for exports, while ongoing plant maintenance at mills has further restricted spot availability.
The combination of higher input costs, stronger consumption and limited spot availability provided a favourable backdrop for aggressive bidding in the latest NMDC auction.
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