After a brief pause, prices in the local Indian pig iron market have increased by INR 600/mt ($9/mt) during the past week to INR 21,300/mt ($318/mt) ex-works, while leading producers have started to hike their base prices earlier than expected, traders said on Wednesday, October 26.
“Leading producers have started to hike prices early even though the market was expecting a price hike in November after the end of the festival holidays later this week,” a Kolkata-based trader said.
“There is a tight supply situation with low inventories at producers and so the latter have begun to adjust base prices,” the trader added.
Market sources said that Neelachal Ispat Nigam Limited (NINL) has increased its base price by INR 60/mt ($9/mt) and other producers are expected to follow suit before the end of the current month.
At least two traders said that, once trading activity picks up after the weekend festivals, local pig iron prices may increase by INR 1,000/mt ($15/mt) in the short term and producers may go in for another round of price hikes in mid-November due to increasing coking coal prices.
$1 = INR 66.83