Local Indian pig iron prices have remained in the range of INR 18,200-18,500/mt ($293-297/mt) ex-works in the past week, holding on to gains made earlier in the month due to expectations of a demand revival, traders said on Thursday, February 27.
According to a Kolkata-based trader, transaction volumes have been modest during the past week as buyers have continued to be cautious, but prices have held firm since demand from foundries is expected to rise with more foundries coming back into operation or increasing their capacity utilization.
Market sources have said that there are no changes in the oversupply situation since there have not been reports of any export tenders from large domestic pig iron producers since the beginning of this year and almost all production is being pushed into the domestic market.
However, the impact of oversupply on prices has been limited since producers are not willing to adjust prices in a downward direction amid shortages and high prices of iron ore from domestic mines, the sources said.