Local Indian pig iron prices have continued their upward trend, increasing by INR 200/mt ($3/mt) during the past week to around INR 17,500/mt ($262/mt) ex-works amid sustained buying and bullish export sentiments, traders said on Wednesday, September 14.
"Local pig iron prices have increased further though the momentum of the upward movement might have eased. But that was expected as the market has taken a pause with overall outlook remaining positive," a Kolkata-based trader said.
"Most dealers are not passing on the marginal price cuts to end users indicating the healthy appetite among buyers particularly among foundries," the trader added.
Market sources said that revival of export orders with lucrative offers will mop up much of the surplus stocks floating in the market providing support for domestic pig iron quotations.
Sources reported that trading firm MMTC had successfully clinched an export tender for 30,000 mt at an estimated offer price of around $240/mt which was significantly higher than market expectations.
It is expected that MMTC representing producer Neelachal Ispat Nigam Limited (NINL) will get aggressive in exports following its success and market expectations is that at least two more export tenders can be floated in the current month; the sources said adding that this would further tighten the volume of local supplies.
$1 = INR 66.86