Local Indian pig iron prices have moved down by INR 1,000/mt during the past week to INR 28,500/mt ($437/mt) ex-works as the correction triggered by lower bookings has gained momentum and as recent concerns over tight supplies have eased, traders said on Wednesday, March 28.
Sources said that, after prices had touched a six-year high and breached the INR 30,000/mt ($460/mt) mark, dealers and end-users particularly from the foundry sector reduced their bookings, while the resulting correction in market prices has gained momentum in the past week.
The source said that concerns over tight supplies which had provided support for the upward movement of prices have eased, with Neelachal Ispat Nigam Limited reporting the refiring of its blast furnace which had been shut down for maintenance, and the market expects a resumption of supplies from the producer earlier than the initially anticipated date of mid-April.
It has also been pointed out by market sources that none of the large Indian producers reported any export tenders during the current month, barring a small export transaction for about 8,000 mt of pig iron to Nepal by Rashtriya Ispat Nigam Limited.
The resumption of pig iron production and commercial sales by Neelachal Ispat Nigam Limited and the low export potential in the short term will ease supply-side pressures on local market prices and so market intermediaries are cautious about making fresh large-volume bookings, instead preferring to wait for prices to cool down further, the sources added.
$1 = INR 65.25