Local Indian pig iron prices have bounced back over the past week, gaining approximately INR 600-700/mt ($10-11/mt) to around INR 18,000/mt ex-works, on the back of renewed restocking by distributors, traders said.
"Distributors had been aggressively liquidating stocks since the festival season in early October. Local prices have increased after traders made fresh bookings from producers during the past week," a Kolkata-based trader said.
"However, despite the price gains, the fundamentals of the market have continued to be bearish since demand from users has remained depressed as most foundries have been facing a host of problems including power shortages and an inability to pass on higher costs to buyers of castings and forging products," the trader said.
Market sources said that most large producers have decided to maintain prices unchanged through December and this has prompted intermediaries to replenish stocks, thereby providing some support for prices.