Local Indian pig iron prices have overcome mid-week dips and stabilized at the previous levels of INR 18,000/mt ($270/mt) ex-works, amid sustained buying activity particularly for steel grade pig iron, traders said on Wednesday, March 23.
“There was some nervousness in the market mid-week when prices dipped by INR 350/mt ($5/mt), due to reports that export tenders had been cancelled by some leading producers,” a Kolkata-based trader said.
“However, buyers have been quick to respond, concluding bookings at lower levels and so dealers’ prices have returned to the previous week’s levels,” he added.
“There is strong demand for steel grade pig iron riding on strong billet prices against the backdrop of the expected revival of construction activities during the summer months, particularly within the scope of government infrastructure projects,” he said.
Market sources said that trading house MMTC Limited, acting on behalf of Neelachal Ispat Nigam Limited, cancelled an export tender of 40,000 mt owing to lower-than-expected bids, but this has failed to have any sustainable impact on sentiments.
The sources said that, with strong domestic demand and the rise in transaction volumes in the market, large pig iron producers including NINL may not refloat the export tender and instead may focus on domestic supplies, with local prices offering good margins at present.