Local Indian pig iron prices have increased by INR 2,700/mt ($40/mt) over the past week to INR 18,000/mt ($267/mt) ex-works, with some large producers hiking base prices and amid hectic restocking of steel grade pig iron in anticipation of rising demand for construction grade steel, traders said on Wednesday, March 16.
Market sources said that large domestic producers like Neelachal Ispat Nigam Limited (NINL) have hiked pig iron prices by around INR 700/mt ($10/mt), while Rashtiriya Ispat Nigam (RINL) announced that its March prices would be unchanged.
“Dealers have hiked their prices substantially more than the increase in base prices, anticipating strong demand for long products on the back of a revival of demand coming from government-funded construction projects,” a Kolkata-based dealer said.
Sources said that the market is expecting more producers including RINL to revise prices upwards next month, with the upward price momentum to continue triggering renewed restocking by dealers.