- Exports surge over 200% y-o-y in Jan-Jul’26
- Higher coke, metallic costs support offers
India’s pig iron market strengthened in August 2026, with Durgapur steel-grade pig iron prices averaging INR 38,600/t, up around INR 800/t m-o-m. Prices climbed from INR 38,400/t on 1 August to INR 39,500/t by 29 August, the highest level since April, supported by strong export bookings, tighter domestic availability and higher input costs.
Exports tighten domestic availability
India’s pig iron exports surged over 200% y-o-y to around 1 mnt during January-July 2026 from 0.32 mnt a year earlier. July exports alone rose to around 375,800 t from 120,000 t in June and 210,000 t in May.
Strong export realisations in the US and Türkiye encouraged producers to prioritise overseas shipments. Export sales offered an estimated INR 1,000-1,500/t premium over domestic realisations in early August, increasing the opportunity cost of selling into the domestic market.
Eastern India’s pig iron production is estimated at around 12,000-15,000 t/day under normal conditions. Maintenance shutdowns and lower domestic offerings could remove around 3,000-4,000 t/day of supply, keeping availability tight.
Higher input costs support prices
Met coke prices increased around INR 500/t m-o-m to an August average of INR 35,850/t, while the latest assessment reached INR 37,000/t on 26 August. Higher coke and coking coal costs raised production costs and supported firmer producer offers.
Alternative metallic costs also strengthened. HMS 80:20 scrap at Mandi Gobindgarh increased around INR 1,800/t m-o-m to an August average of INR 36,300/t, while Durgapur sponge iron prices rose around 10% m-o-m to INR 25,498/t.
Lower scrap imports further supported pig iron demand. India’s ferrous scrap imports fell around 50% y-o-y to 2.33 mnt in H1CY’26, limiting availability of alternative metallics. Meanwhile, Durgapur billet prices rose around INR 1,350/t m-o-m to INR 39,500/t, supporting overall metallic consumption.
Auctions reflect firmer market
Auction activity strengthened during August amid tighter spot availability. SAIL conducted seven auctions, offering 36,270 t and selling 30,470 t, while NMDC sold its entire 10,000 t offering.
Auction bids increased from around INR 35,530/t in early August to INR 38,760/t by month-end. The rise reflected stronger export parity, tighter domestic supply and continued buying interest, although resistance emerged at elevated price levels.
Regional market trends
Southern India saw pig iron prices rise around INR 1,500-2,000/t, supported by improved foundry demand and stronger enquiries from western markets. Producers diverted more material towards these destinations, helping maintain firm offers.
Northern markets also strengthened amid healthy demand and relatively tight scrap availability, which encouraged greater pig iron usage. Buying was stronger early in the month, although improved supply towards month-end moderated procurement urgency.
Raipur and Raigarh remained comparatively cautious despite prices increasing by around INR 1,200/t and INR 2,650/t, respectively. Buyers continued to compare pig iron economics with sponge iron and scrap. Softer iron ore prices provided some cost relief, limiting aggressive price increases.
Eastern India recorded an average price increase of around INR 800-900/t m-o-m to INR 38,660/t. Stronger downstream demand, export bookings, maintenance-related supply constraints and higher raw-material costs supported firmer offers and improved buying sentiment.
Outlook
Pig iron prices are likely to remain firm to higher in September, supported by sustained export demand, tight domestic availability and elevated met coke and coking coal costs. Higher scrap and sponge iron prices could further support pig iron demand.
However, improving scrap imports or a slowdown in export bookings could ease supply pressure and limit further gains. Any weakening in downstream steel demand could also increase buyer resistance at elevated price levels.
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