Kolkata, April 12, 2026 : The escalating Iran–US conflict had significantly disrupted India’s foundry and castings sector, triggering sharp increases in raw material costs and logistics expenses, according to a joint statement issued by leading industry bodies.
The Foundry and Castings Development Association (FCDA), the Institute of Indian Foundrymen (IIF), and the Indian Foundry Association (IFA) reported that pig iron prices witnessed a steep rise of over 13 per cent in the past three months. Steel-grade pig iron prices climbed from Rs 36,500 per tonne in January 2026 to Rs 41,500 per tonne as of April 10, while foundry-grade pig iron increased from Rs 40,000 to Rs 45,000 per tonne during the same period.
The surge was further compounded by rising input costs. Domestic hard coke prices increased by Rs 2,000–3,000 per tonne due to freight escalation and war-related surcharges. Resin prices saw a sharp jump from Rs 100 per kg to over Rs 160 per kg, while catalyst prices rose from Rs 50 to Rs 75 per kg since January.
Logistics costs emerged as a major concern, with freight rates to key markets including the United States, Europe, and the Middle East surging by 50–60 per cent. Overall logistics expenses increased between 40–100 per cent, driven by war risk surcharges, higher insurance premiums of up to 5–10 per cent of vessel value, and rerouting of shipments via the Cape of Good Hope amid Red Sea tensions.
Export demand showed signs of moderation, with global buyers adopting a cautious approach. While oil and gas, pumps, and valve segments remained stable, automotive and construction-linked castings witnessed a slight slowdown. MSME foundries faced mounting challenges, including margin erosion, delayed shipments, and stretched working capital cycles.
Vijay Shankar Beriwal, Joint Chairman of FCDA, stated that payment cycles had lengthened considerably, placing additional pressure on MSME foundries already grappling with margin erosion and rising working capital stress amid escalating input costs. He further noted that despite these challenges, India’s diverse sourcing capabilities and strong domestic production ecosystem continued to provide a degree of resilience, helping shield the pig iron market from global uncertainties and supply shocks.
The press meet was attended by key industry representatives including Sandip Kejriwal, Sumit Agarwal, Anil Madhogaria, and Sandip Dutta, who echoed concerns over rising costs and emphasized the need for strategic support to sustain sectoral growth.
Despite the challenges, industry bodies noted that India was increasingly being viewed as a reliable alternative sourcing hub, supported by its strong engineering capabilities, cost competitiveness, and established global trade relationships.
