Following their previous sideways movement, local Indian pig iron prices have increased by INR 500/mt during the past week to INR 22,800/mt ($355/mt) ex-works, as producers commenced base price revisions and amid improved export indications, traders said on Wednesday, May 3.
Sources said that the largest domestic pig iron producer, Neelachal Ispat Nigam Limited (NINL), has hiked its base price by a hefty INR 1,400/mt, citing a rise in input costs including the cost of coking coal, while other producers are expected to follow suit over the course of the current week.
The sources said that the market seems to have absorbed the base price revisions, particularly for steel grade pig iron, as billet prices have remained strong and are up by an average of two percent in markets across the country.
The sources said that large pig iron producers are reported to be in the advanced stage of floating fresh export tenders, which indicates that the lull in overseas shipments seen last month is coming to an end, and this has supported prices and sentiment.
$1 = INR 64.15