Local Indian
pig iron prices have moved up by INR 300/mt ($4/mt) to INR 15,900/mt ($238/mt) ex-works during the past week, on the back of restocking by dealers in anticipation of the bottoming out of prices in the short term, traders said on Wednesday, August 17.
"Local
pig iron prices earlier in the month of August had hit their lowest point since January this year. Dealers have also been able to reduce stocks over the past two months and now feel that the current downturn might have run its course, triggering some modest restocking," a Kolkata-based trader said.
"But the upside potential from current levels will remain limited by the fact that there have not been any successful export tenders from any of the large producers over the past month," the trader added.
Market sources said that in certain markets like central
India around Raipur dealers are avoiding passing on the higher prices to end-users by offering matching discounts of INR 300/mt ($4/mt), with the aim of pushing higher volumes.