Local Indian pig iron prices have remained stable during the past week at around INR 15,900/mt ($237/mt) ex-works, supported by market expectations of price hikes by producers and strong bookings from the foundry sector, traders said on Wednesday, August 24.
"There is a lot of talk in the market about producers hiking their base prices to pass on the higher cost of coal. Dealers have also withdrawn all discounts on offer as bookings from the foundry sector have improved," a Kolkata-based trader said.
"However, I am not very sure whether there will be a sufficient support from key drivers like demand to breach the upside resistance at INR 16,000/mt ($238/mt) ex-works. My expectation is that local pig iron prices will move within a narrow range in the short term," the trader added.
However, a section of the market maintains that short-term sentiments and prices will be determined by whether signals of rising pig iron exports will be sustained.
They said that the direction of the export market will be set by the success or otherwise of a fresh export tender for 15,000 mt floated by trading firm MMTC Limited on behalf of Neelachal Ispat Nigam Limited (NINL). The deadline for bids is September 8.
1$= 67,14 INR