Over the past week, prices in the local Indian pig iron market have remained stable at INR 21,300/mt ($319/mt) ex-works, amid expectations of demand weakening and existing high inventories held by dealers, traders said on Wednesday, November 2.
“The market expects producers to hike base prices in response to rising coking coal prices. But with high inventories at dealers and the demand uptick seen in the previous month losing momentum, any increase from current levels is expected to face market resistance,” a Kolkata-based trader said.
Market sources said that the supply-side tightness seen in previous months seems to be easing, and so most of the large producers who had halted export offers in view of rising domestic demand have been able to return to the exports market during the past week.
The sources pointed out that domestic producer Steel Authority of India Limited has put on offer about 20,000 mt of pig iron for overseas shipment during the past week.
$1 = INR 66.80