The local Indian pig iron market has lost steam during the past week, with prices decreasing by INR 400/mt ($6/mt) week on week to INR 22,800/mt ($357/mt) ex-works, seen as a temporary correction amid a medium-term optimistic outlook, traders said on Wednesday, August 9.
“The market is taking a breather after the strong gains early in the month. With fundamentals still strong, the slight correction in prices is the result of dealers taking a break after restocking,” a Kolkata-based trader said.
“The downside will be limited as, given overall strong prices of billet and finished steel, we expect renewed buying support in the short term,” he added.
At least two other traders said that several large pig iron producers are keeping volumes for their own conversion into billets and this is expected to keep supplies to the market tight, which in turn will provide support for local prices.
Although there have been no reports of any new export tenders from producers during the week, sources said that there are indications that large companies like Steel Authority of India Limited and Neelachal Ispat Nigam Limited are likely to float export tenders over the next fortnight.
$1 = INR 63.79