Foundry industry melting down as steep iron ore prices take a toll

In industries like automobiles, where foundries have a margin of 7-8 per cent, passing over the increase in cost is the only option available

The Indian foundry industry is not able to utilise increased order enquiries due to a 30-40 per cent rise in the cost of iron ore in the last few months. This comes at a time when the industry is trying to recover from the effects of  demonetisation and the Goods and Services Tax.
 
India’s foundry industry is the third largest in the world with a production capacity of 10 million tonnes in 2015-16 after China (40 million tonnes) and the US (11 million tonnes). It caters to the automobile, railway, machine tools, defence, aerospace and electrical industries.
 
Brijesh