Local Indian
pig iron prices have consolidated at the increased level of INR 18,500/mt ($303/mt) ex-works during the past week amid improvements in market sentiment and transaction volumes, traders said on Wednesday, March 12.
According to a Kolkata-based trader, demand from foundries in northern and southern
India has showed modest improvements and this has been matched by fresh bookings, providing support for prices and enabling traders to withdraw volume discounts.
However, a section of the market has expressed doubts over the sustainability of the higher prices and think that the upside potential of local
pig iron prices may be limited by the negative manufacturing sector growth outlook, sources said.
It has been pointed out that, while government spending is expected to slow down ahead of the national elections starting next month, demand for
pig iron for end-used products is still subdued from sectors like automotive and engineering products.
Sources have said that continued oversupply from large producers will keep pressure on prices since no large export tenders have been reported by producers since January this year.