Local Indian pig iron prices have remained stable in the past week in the range of INR 18,200-18,500/mt ($294-299/mt) ex-works on the back of marginally improved transaction volumes and anticipated increases in export order volume, traders said on Thursday, March 6.
According to a Kolkata-based trader, improvements in volumes have been reported in the northern and southern markets on the back of higher capacity utilizations of foundries in these regions.
However, the upside potential of local prices will continue to be limited since the market has remained under pressure from oversupply as no export tenders have been reported by any of the large producers during the week.
Market sources said that sentiments in the local pig iron market are marginally up amid expectations of export markets opening up over the next two months on reports that global pig iron production had fallen during the last quarter and that buyers may look at booking volumes from Indian producers.
Sources said that sentiments in the local pig iron market have improved on the back of reports that Indian manufacturing sector growth in February was the highest in the last 12 months. But, while this has boosted sentiments, it will not change the oversupply position in the market in the short term, thereby limiting any upward movement in pig iron prices, the sources added.