Local Indian pig iron prices have remained stable during the past week at INR 19,000/mt ($285/mt) ex-works, as market participants have been in wait-and-see mode amid reports of producers announcing a new price list within the next one week, traders said on Wednesday, April 20.
“After the price surge earlier in the month, the pig iron market has been seen to be consolidating at higher levels with very limited downside potential,” a Kolkata-based trader said.
“In fact, there are lot of reports in the market that Neelachal Ispat Nigam Limited (NINL) will announce a new price list as early as within the next one week for May deliveries and so buyers have decided to wait and watch,” the trader added.
Market sources said that it was unusual for any of the producers to announce a price revision towards the close of the month. This has been taken as an indication in the market that supplies are getting tight and that large producers want to announce price hikes as soon as they can, the sources added.
The minimum price hike expected by the market is about INR 500/mt ($7.5/mt), the sources said.