Indian domestic pig iron prices have recorded marginal gains during the past week of around INR 200/mt ($3/mt), rising to INR 19,200/mt ($315/mt) ex-works amid anticipated disruptions of supplies of iron ore owing to rainy weather, traders said on Monday, July 8.
According to two Kolkata-based traders, reports available in the markets have indicated that large-scale pig iron producers have been facing raw material supply bottlenecks due to the influence of widespread rain on loading and transportation of iron ore from mines.
Market sources have said that traders have been attempting to marginally increase their offers to foundries more based on sentiments and anticipation of supply constraints rather than on any definitive fall in pig iron availability from producers so far.
The sources said that some volumes of pig iron have been transacted at higher prices in the eastern and southern regions of India where low stocks of raw material with producers have been reported.
However, a section of traders based in Orissa in eastern India said that gains in domestic pig iron prices have been too marginal to indicate a definite trend and that demand is still suffering acutely, which will prevent traders from pushing any higher offers to user industries.