Local Indian local pig iron prices have remained stable at INR 16,500/mt ($258/mt) ex-works, against the backdrop of indications that domestic producers will announce price hikes later this week, traders said on Wednesday, January 6.
"The market seems to be getting stronger as current pig iron price levels have remained firm for a month now," said a Kolkata-based trader. "Prices are poised to move into a positive zone as there are reports that most producers are considering price increases amid the supply tightness in the market," he added.
Market sources said that price hikes are likely to be led by Neelachal Ispat Nigam Limited (NINL), which is expected to announce an increase of INR 500/mt ($7.5/mt), to be followed by other domestic producers.
However, a section of the market maintains that most of the market activity and stronger prices are focused on steel grade pig iron as stronger billet prices are driving volumes, while transactions for foundry grade pig iron are restricted by the demand crunch faced by foundries for casting and forged steel products.