Having declined since early last month, local Indian
pig iron prices have rebounded over the past week, moving up by INR 600/mt week on week to INR 21,800/mt ($326/mt) ex-works amid fresh restocking in the domestic market and improvements in the export outlook, traders said on Wednesday, March 1.
"Restocking led by foundries have enabled
pig iron prices to reverse their prolonged downward trend. Fresh bookings by dealers and restocking by foundries have possibly been triggered by a perception that local prices have hit a short-term bottom," a Kolkata-based trader said.
"The positive outlook on the export front also provided support for prices," the trader added.
Market sources said that at least two producers have been successful in concluding export transactions for two lots of
pig iron of 30,000 mt each, and this has boosted market sentiment.
Although no confirmation on the export transaction price was available, at least two traders said that these overseas shipments were concluded above the $300/mt mark, which was higher than market expectations.
The market sources said that there were reports that large
pig iron producers were getting ready to put on offer an aggregate 100,000 mt for export tender over the next fortnight, buoyed by the improved export outlook, and that this would provide further support for local
pig iron prices to consolidate.
$1 = INR 66.86