Local Indian pig iron prices remained unchanged during the past week at INR 22,300/mt ($348/mt) ex-works as buyers have been awaiting for fresh pricing signals from producers and amid mixed sentiments over exports, traders said on Wednesday, April 26.
"The price difference between steel and foundry grade pig iron has also remained unchanged with the latter priced INR 6,000/mt ($94/mt) higher. But activity for both grades in the market is slow owing to month-end considerations and as the market has not received any definite pricing signals from producers for May deliveries," a Kolkata-based trader said.
Sources said that the market is also receiving mixed signals from the export front. For example, trading firm MMTC Limited acting on behalf of pig iron producer Neelachal Ispat Nigam Limited cancelled a 30,000 mt lot in a pig iron export tender and subsequently refloated the same tender later in the week. The sources said that it is not clear as to why the trading firm cancelled and refloated the same tender, but it is possible that it did not receive expected bids the first time and this is a possible indication of a softening in the export market.
However, at least two other traders ruled out any possibility of any significant downward movement of domestic prices in the short term as producers are facing sharp rises in imported coking coal prices.
$1 = INR 64.08