Local Indian pig iron prices have remained stable for the second consecutive week at INR 18,000/mt ($272/mt) ex-works, amid lower buying interest possibly in reaction to the price hike made by producers early in the month, traders said on Wednesday, March 30.
"There has seemed to be some resistance among buyers to the price hikes made earlier in the month. Besides, most dealers have been carrying high stocks and could afford to stay away from fresh bookings at the current higher levels," a Kolkata-based trader said.
"Some buyers are waiting for downward price adjustments by producers in April in view of the fall in volumes in the market. But I am far from certain that this will happen," the trader added.
However, other market players have said that demand for steel grade pig iron is expected to stay strong riding on strong billet prices and expected demand from the construction sector. This has prompted some of the large pig iron producers to cancel export tenders and to channel higher volumes to the domestic market. Trading house MMTC Limited acting on behalf of Neelachal Ispat Nigam Limited (NINL) cancelled an export tender for 40,000 mt earlier in the month, market sources said.
Such cancellations will possibly keep expectations of a price correction in check, the sources added.
$1 = INR 66.27