Local Indian
pig iron prices have remained unchanged at INR 17,000/mt ($274/mt) ex-works during the past week against the backdrop of a certain improvement in demand for both foundry and steel grade
pig iron, traders said on Wednesday, April 22.
According to a Kolkata-based trader, billet prices have showed signs of firming up particularly in the central and southern Indian markets, triggering higher demand for
pig iron even though most producers have kept their base prices unchanged for the current month.
The trader said that demand for foundry grade
pig iron in the northern Indian region has also consolidated at a higher level amid transactions concluded during the week by several casting and forging units.
However, some market sources have cautioned against optimism on
pig iron prices in view of disappointing export tenders and reports of a few producers considering end-of-month discount offers to liquidate stocks.
The sources said that government trading firm MMTC Limited has concluded an export tender during the week for 40,000 metric tons at $250/mt FOB, which was lower than the expected price of around $280-290/mt.
Although it is not clear yet, in view of lower-than-expected
pig iron export prices, other large
pig iron producers may consider either pulling back volumes for export or drastically reduce export tonnages and push them into the local market, putting additional pressure on local prices, the sources said. An indication of this is that Neelachal Ispat Nigam Limited (NINL) is reportedly considering offering discounts of INR 400/mt ($6/mt) for all
pig iron orders submitted before April 30, the sources added.