Local Indian pig iron prices have moved up sharply during the past week, gaining INR 900/mt to INR 22,500/mt ($349/mt) ex-works, riding on strengthening billet prices and increased export shipments, traders said on Wednesday, July 26.
“Large trading houses like MMTC Limited are reportedly concluding export transactions for large volumes above the $300/mt FOB mark. More export tenders are said to be around the corner. Hence, there is some tightening of supplies in the domestic market, providing support for local market prices,” a Kolkata-based trader said.
Market sources said that billet prices are currently at a near 30-month high and many of the large pig iron producers are keeping volumes for conversion into billet, resulting in less available commercial supply of pig iron. Over the past one week, billet prices have moved up by INR 400/mt to INR 28,000/mt ($435/mt) ex-works, the sources said.
The sources said that while MMTC Limited concluded an export tender for 30,000 mt pig iron during the past week, the trading firm will likely float another tender before the end of the current month, leading to optimism on the export front and boosting sentiment in the domestic market.
$1 = INR 64.41