Local Indian pig iron prices have risen by INR 500/mt ($7.5/mt) over the past week to around INR 15,800/mt ($239/mt) ex-works on the back of restocking by dealers with producers expected to maintain their prices unchanged during the current month, traders said on Wednesday, September 2.
According to a Kolkata-based trader, the market has seen significant restocking during the past week as most participants expected price stability and, at least in the short term, a halt to the downward movement of prices.
Restocking volumes have been particularly high in central and western Indian markets spurred by indications from large producers that base prices will be kept unchanged during September, the trader added.
However, a section of the market has said that the uptrend depending on restocking is unlikely to be sustained as fundamentals and macro indicators have continued to be low, and they have also pointed out that India’s growth in factory output as announced by the government on Tuesday, September 1, showed slippages in August amid softer demand and price cuts by the manufacturing sector.
It has also been pointed out that most of the increase in prices has been restricted to steel grade pig iron, reflecting the marginal rise in billet prices, while foundry grade pig iron demand has remained sluggish, reflecting low off-take by user industries particularly the auto sector, the sources added.