Local Indian pig iron prices have remained stable during the past week in the range of INR 15,800-16,000/mt ($254-257/mt) ex-works amid low volumes but marginal improvements in export sentiments, traders said on Wednesday, April 1.
According to a Kolkata-based trader, buyers were unwilling to risk concluding transactions during the last week of the current fiscal year (ended March 31) and due to expectations that large producers will lower their April prices.
However, prices have found modest support on the back of the marginal revival in pig iron exports during the week, when transactions were reported to have been successfully concluded after an interval of nearly two months.
Domestic pig iron producer Rashtriya Ispat Nigam Limited (RINL) is reported to have concluded a transaction for 40,000 metric tons in an export tender during the past week, although no indication of the price accepted was available in the market.
RINL followed up this success by floating another export tender for 30,000 metric tons for offers during April and this has buoyed market sentiment and hopes of outward shipments have gained momentum, the sources said.
However, a section of the market has warned against expecting producers to cut April prices since most large producers are operating in conditions of low supply and high iron ore prices, which will limit their room for price adjustments.
Moreover, producers will be keeping a close watch on outward pig iron shipments and any increase in export volumes would enable them to keep their local base prices unchanged, the sources cautioned.
$ 1 = INR 62.30