Local Indian
pig iron prices have remained unchanged during the past week at around INR 16,500/mt ($266/mt) ex-works amid a marginal improvement in sentiment over lower iron ore prices, traders said on Tuesday, February 3.
According to a Kolkata-based trader, prices have been steadied by reports of NMDC, the country's largest iron ore miner, reducing prices. NMDC has announced a lowering of its iron ore lump prices by INR 450/mt ($7/mt) and of fines prices by INR 390/mt ($6/mt).
However, the upside potential in
pig iron prices will still be restricted by issues over availability of iron ore for large
pig iron producers and low off-take since demand and prices for billets and long products are still very weak.
Market sources said that pressures on local
pig iron prices are expected to persist since no successful export tenders have been reported in the market since early last month.
At the same time, supply side pressures will also increase with most leading producers offering fresh
pig iron stocks through open sale over the past week.
The Rourkela plant of Indian steelmaker Steel Authority of
India Limited (SAIL) has been offering a large stock of 52,800 mt of
pig iron for February sales, while MMTC, the government trading house, had floated an open sale offer on behalf of Neelachal Ispat Nigam Limited (NINL) though the volume on offer has not been announced.