Local Indian pig iron prices have recorded marginal gains in the range of INR 100-200/mt ($1.6-3.2/mt) to about INR 18,400/mt ($300/mt) ex-works on the back of fears of an impending iron ore shortage, traders said on Wednesday, August 13.
According to a Kolkata-based trader, despite low demand for foundry products and a fall in billet prices, both foundry and steel grade pig iron prices have switched from a downtrend to upward movement as buyers are cautiously restocking, fearing supply issues from a possible iron ore shortage.
Fears of an iron ore shortage have been triggered by a recent communication of India's Ministry of Steel to the Ministry of Mines, warning that steel mills will be facing an "acute shortage" of the raw material in view of declining production of ore and the limited capacity of only a few steel mills to resort to imports to meet their iron ore requirements.
Market sources said that Rashtriya Ispat Nigam Limited (RINL) has floated a tender for the export of 30,000 mt of pig iron to be finalized on August 28, but the transaction volume is considered too low to impact local prices.
$1 =INR 61.22