Indian domestic pig iron prices have firmed up by INR 100-200/mt ($1.6-3/mt) during the past week to around INR 19,700/mt ($331/mt) ex-works, due to the uptrend of local iron ore prices.
According to market sources, although most large domestic producers have not changed their base pig iron prices, traders have to pay higher prices since all volume discounts have been discontinued.
The market sources state that most traders are able to pass on the higher prices to users in the foundry segment, since there is a slight tightness of supply in the market.
The sources said that most large producers of pig iron are facing shortage of iron ore because of rains which have disrupted production at mines as well as loading and transportation from pitheads.
The sources said that the market still lacks confidence regarding whether the higher pig iron prices will be sustained, since demand in the foundry sector is weak and as foundry products will not be able to absorb the higher input costs.