Local Indian
pig iron prices have showed gains in the range of INR 300-500/mt ($5-8/mt) in the past week to levels of around INR 18,800-19,000/mt ($307-310/mt) ex-works on the back of improved sentiments and marginally higher transaction volumes, traders said on Thursday, April 24.
According to a Kolkata-based trader, sentiments among buyers in the foundry sector have become buoyant amid expectations that a new Indian government next month will provide a boost for the country's manufacturing sector.
Expectations of a change in government after the current elections are higher in northern and southern
India and naturally
pig iron buyers in these regions have been more bullish, the trader said.
However, he added that gains in local prices have been driven largely by sentiment and not by substantially higher booking volumes.
Sources said that there have been no reports in the market of any of the large
pig iron producers having successfully negotiated any export shipments for the current month and hence domestic supplies will continue to keep outstrip demand and the gains made in the past week are unlikely to be sustained purely on the back of sentiments in the foundry sector.