Kolkata, April 11: India’s foundry and castings industry is facing mounting pressure as escalating tensions in West Asia, particularly the Iran–US conflict, drive up raw material costs and disrupt global logistics, industry bodies said in a joint statement.
According to the Foundry and Castings Development Association (FCDA), the Institute of Indian Foundrymen (IIF), and the Indian Foundry Association (IFA), pig iron prices have surged sharply over the past three months. Steel-grade pig iron rose from ₹36,500 per tonne in January 2026 to ₹41,500 per tonne as of April 10, marking an increase of over 13 per cent. Foundry-grade pig iron also climbed significantly, from ₹40,000 to ₹45,000 per tonne during the same period.
The cost escalation has been compounded by rising input prices. Domestic hard coke rates increased by ₹2,000–3,000 per tonne, driven by higher freight charges and war-related surcharges. Resin prices jumped steeply from ₹100 per kg to over ₹160 per kg, while catalyst prices rose from ₹50 to ₹75 per kg since January.
Logistics has emerged as a critical pain point for the sector. Freight rates to key export destinations such as the United States, Europe, and the Middle East have surged by 50–60 per cent. Overall logistics costs have risen between 40 and 100 per cent due to war risk surcharges, increased insurance premiums—ranging between 5–10 per cent of vessel value—and rerouting of shipments via the Cape of Good Hope amid ongoing Red Sea tensions.
Export demand has also shown signs of softening, with global buyers adopting a cautious stance. While demand from sectors like oil and gas, pumps, and valves remains relatively stable, segments linked to automotive and construction have witnessed a mild slowdown.
Micro, small, and medium enterprises (MSMEs) within the foundry sector are bearing the brunt of these disruptions. Industry leaders highlighted concerns over shrinking margins, delayed shipments, and tightening working capital cycles.
Vijay Shankar Beriwal, Joint Chairman of FCDA, noted that payment cycles have lengthened considerably, intensifying financial stress for MSME foundries already grappling with rising input costs and margin pressures. However, he emphasized that India’s diversified sourcing base and robust domestic production ecosystem continue to provide a cushion against global supply shocks.
The press meet was attended by key industry representatives including Sandip Kejriwal, Sumit Agarwal, Anil Madhogaria, and Sandip Dutta, who collectively underscored the urgent need for strategic policy support to sustain the sector’s growth momentum.
Despite ongoing challenges, industry bodies expressed cautious optimism, stating that India is increasingly being seen as a reliable alternative sourcing hub, backed by strong engineering capabilities, competitive pricing, and well-established global trade linkages.
