Kolkata, April 10 The Iran-US conflict has created significant cost pressures and logistical disruptions for India's foundry and castings sector. Pig iron prices have surged by over 13% in three months, and freight rates to key markets have increased by up to 60%, according to stakeholders.
The price of pig iron for steel grade has risen from ₹36,500 per tonne in January 2026 to ₹41,500 per tonne as of April 10, while the price of foundry-grade pig iron has increased from ₹40,000 to ₹45,000 per tonne over the same period, representing a more than 13% increase 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) – issued a joint statement.
They detailed the impact of the West Asia conflict, noting that domestic hard coke prices have also increased by ₹2,000-3,000 per tonne, driven by rising freight costs and war-related surcharges.
Resin prices have also seen a sharp increase, rising from ₹100 per kg to over ₹160 per kg since January, while catalyst prices have increased from ₹50 to ₹75 per kg, they said.
Freight rates to the United States, Europe, and the Middle East have increased by 50-60%, with overall logistics costs increasing by 40-100%.
This increase has been compounded by war risk surcharges, emergency conflict surcharges, higher insurance premiums of up to 5-10% of vessel value, and the 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 are adopting a wait-and-see approach. Demand for oil and gas, pump and valve components remains stable, while castings related to the automotive and construction sectors 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 the Gulf Cooperation Council nations.