Local Indian pig iron prices have rebounded during the past week, gaining INR 300/mt ($4/mt) to INR 19,200/mt ($288/mt) ex-works, amid the continued firmness of billet prices and as dealers have been restocking to take advantage of earlier price cuts, traders said on Wednesday, May 11.
“The price cuts announced by producers earlier in the month seemed to be having an impact in reviving fresh buying interest,” said a Kolkata-based trader.
“Buying interest was also bolstered by billet prices which have continued to remain strong. Volumes of steel grade pig iron are particularly high as the market expects demand for construction grade long products to receive a boost from government projects,” the trader added.
Market sources said that high transaction volumes and the lowering of prices by producers have helped market participants to improve their margins and so they have been aggressively pushing volumes to end-users.
At the same time, an export tender for 20,000 mt from Steel Authority of India Limited (SAIL) has impacted sentiment, with the market taking this as a tentative indication of a revival of pig iron exports from the country, although a few traders said that it was too early as other producers are yet to finalize any export tender announced over the past two months.