Kolkata, Apr 10 (PTI) The Iran-US conflict has triggered significant cost pressures and logistics disruptions for India’s foundry and castings sector, with pig iron prices surging over 13 per cent in three months and freight rates to key markets spiking by up to 60 per cent, according to stakeholders.
Pig iron prices for steel grade have risen from Rs 36,500 per tonne in January 2026 to Rs 41,500 per tonne as of April 10, while foundry grade pig iron has jumped from Rs 40,000 to Rs 45,000 per tonne over the same period, a rise of more than 13 per cent in three months, they said.
The stakeholders — the Foundry and Castings Development Association (FCDA), the Institute of Indian Foundrymen (IIF) and the Indian Foundry Association (IFA) — made a joint statement.
Detailing the impact of the West Asia conflict, they said domestic hard coke prices have also increased by Rs 2,000-3,000 per tonne, driven by freight escalation and war-related surcharges. Resin prices have seen a sharper surge, climbing from Rs 100 per kg to over Rs 160 per kg since January, while catalyst prices have moved up from Rs 50 to Rs 75 per kg, they said.
Freight rates to the United States, Europe and the Middle East have risen by 50-60 per cent, with overall logistics costs climbing by 40-100 per cent.
The increase has been compounded by war risk surcharges, emergency conflict surcharges, higher insurance premiums of up to 5-10 per cent of vessel value, and rerouting of vessels via the Cape of Good Hope due to heightened risk in the Red Sea corridor.
On the export front, order inflows have slowed as overseas buyers adopt a wait-and-watch approach. Oil and gas, pump and valve component segments have seen stable demand, while automotive and construction-linked castings are experiencing a slight slowdown. MSME foundries are reporting margin erosion, working capital stress, shipment delays and lengthening payment cycles.
However, the industry bodies noted that India is emerging as a preferred alternative sourcing destination for global buyers looking to diversify away from conflict-affected regions, given the country’s engineering capabilities, cost competitiveness and established trade relationships with Gulf Cooperation Council nations. PTI BSM NN NN
This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.