Local Indian pig iron prices have remained stable during the past week at INR 19,000/mt ($322/mt) ex-works amid improved sentiment and higher transaction volumes led by the revival in the long products market, traders said on Wednesday, May 28.
"There is a mixed trend across the local pig iron markets. Markets are anticipating a demand surge in long products with increased activities in construction and infrastructure and hence transaction volumes of steel grade pig iron are rising," a Kolkata-based trader said.
" At the same time, sentiments are still depressed in the auto sector and demand from foundries catering to the auto industry have continued to remain depressed," the trader added.
Market sources said that, with long product prices on an upward trend, several large pig iron producers like Neelachal Ispat Nigam Limited (NINL) and Rashtriya Ispat Nigam Limited (NINL) are expected to reduce their commercial sales of pig iron and divert higher volumes for captive billet production, thereby easing supply side pressures.
However, in the short term there is only expected to be sufficient support for a rise of around INR 250/mt ($4/mt) in local prices in the absence of any export tenders from large producers and given the demand sluggishness for foundry grade pig iron, sources added.
$1 = INR 58.95