Prices in the local Indian pig iron market have remained stable during the past week at INR 20,300/mt ($299/mt) ex-works, even though trading activity has slackened, traders said on Wednesday, December 7.
“The downward trend in pig iron prices seems to have been checked, largely owing to modest support coming from successful export orders,” a Kolkata-based trader said.
“However, the short-term trend remains uncertain with a downward bias, especially as most foundries are reeling from the dual impact of high power tariffs and an acute shortage of cash for the purchase of raw materials. Many small-scale foundries are facing issues in terms of making payments to their workers,” the trader added.
Market sources said that pig iron export activity has improved as indicated by the latest export tender concluded by MMTC Limited for a lot of 15,000 mt which reportedly fetched $10/mt higher than any of the immediate previous tenders.
In fact, increased exports and the weak trend of the Indian currency have prompted the trading firm MMTC to offer another lot of 15,000 mt for overseas sales.
Although not confirmed by the trading firm, market sources indicate that export transaction prices have improved to $290/mt FOB, and the market expects export offers to firm up to around $300/mt FOB, providing some support for domestic market sentiment which has been on the weak side, the sources added.
$1 = INR 67.67