Local Indian
pig iron prices have surged during the past week, rising by INR 400/mt ($6/mt) week on week to INR 16,300/mt ($243/mt) ex-works, amid renewed bookings from the foundry sector and restocking by dealers, traders said on Wednesday, August 31.
"A lot of buying has been made due to the perception that the market had bottomed out. In fact, market expectations are that producers will hike their base prices to offset higher coking coal prices and freight rates, and this has provided new support for prices," a Kolkata-based trader said.
Market sources said that Neelachal Ispat Nigam Limited (NINL) is the first off the blocks, increasing its prices by INR 500/mt ($7/mt), with others expected to start announcing revised prices as of next week.
The sources said that it is surprising that NINL has revised its prices for September deliveries so early, at the end of August, and this is taken as an indication that NINL may announce two rounds of price increases over the next month, taking advantage of the revival in prices and higher demand.
$1= INR 66.98