After a brief period of stability, prices in the local Indian pig iron market have increased by INR 700/mt ($11/mt) during the past week to INR 24,700/mt ($385/mt) ex-works, due to the rise in export offer prices, strong domestic demand and anticipation of a base price hike by producers, traders said on Wednesday, September 5.
Market sources said that leading producers and trading firm MMTC Limited are planning to float a number of export tenders over the next few weeks.
Exporters are expecting export prices to exceed the $325/mt FOB level, the highest over the past year, and this, coupled with the steady rise in fresh bookings by foundries, has triggered bullish sentiment in the market, the sources said.
At least two other traders said that large producers including Neelachal Ispat Nigam Limited are expected to announced revised base prices over the next few days and the market is expecting a hike of around INR 500/mt ($8/mt).
The sources said that MMTC Limited, which had floated an export tender of 30,000 metric tons on August 30, has extended the deadline for submission of bids until September 12, expecting higher bids to be submitted.
$1 = INR 64.16