However, the overseas markets, especially the US market for cast iron sanitaryware, which were lost owing to high prices in the past two months, are yet to be regained.

According to the president of India Foundry Association, Amal Banerjee, the prices of pig iron went up by about Rs 1,500 per tonne from March levels of Rs 6,400-7,025 per tonne. The shortage of supply was caused by the shutting down of one of Iisco's two hot metal plants early April.

Iisco's partial absence caused a pig iron shortfall of about 10,000 tonne per month and this pushed up prices steeply. The other manufacturers, namely Tata Metalliks, Kajaria Iron, Bokaro Steel Plant of Steel Authority of India and Kalinga Iron & Steel Co, revised their prices every fortnight till Iisco put the overhauled plant back on commission early July. However, it took another 15 days to raise production to full capacity, which is 15,000 tonnes per month. As a result, prices reached an all-time high of Rs 7460-8,775 per tonne in July.

In the course of the events, the local industry lost its lucrative markets for cast iron sanitaryware in the Middle East and the US. These markets were virtually grabbed by China, the other major producer of cast iron sanitaryware.

Although prices have started coming down since the beginning of this month - a tonne of pig iron is being quoted at Rs 6,950-7350 now, showing a decline by Rs 510-1425 per tonne - we will still have to struggle hard to regain our lost export destinations, says the Indian Foundry Association's (IFA) secretary, Ashok Srivastav.

Srivastav says that China is offering finished cast iron sanitaryware at the export markets for Rs 10,000 per tonne, which is still lower by Rs 3,000 a tonne than the Rs 13,000 per tonne being quoted by India.

The local manufacturers in and around Calcutta and Howrah suffered at the hands of Punjab's cast iron products too which received considerable subsidy from the local government and attracted only 1 per cent sales tax against 4 per cent in West Bengal.

The local industry here has finally found a respite with prices coming back to normal. Meanwhile, the IFA has entered into an agreement with Iisco to consume half its hot metal during the current year, which should ensure continuous supply of pig iron to the local industry, says Srivastav.