Local Indian
pig iron prices have bounced back during the past week, moving up by INR 800/mt ($13/mt) to the range of INR 19,300-19,500/mt ($320-323/mt) ex-works amid improved sentiment and transaction volumes, traders said on Wednesday, June 18.
According to a Kolkata-based trader, over the past two months inventories held by market intermediaries have been digested and so in the past week traders have been replenishing their stocks, resulting in higher transaction volumes.
Moreover, the market is expecting producers to increase their
pig iron base prices and withdraw discounts in the wake of rising iron ore prices from domestic sources, the trader added.
Market sources said that though Neelachal Ispat Nigam Limited (NINL) had already announced volume discounts for June deliveries, it is expected to withdraw discounts in the coming month owing to the rise in raw material and energy costs.
During June, NINL has announced discounts of INR 200/mt ($3/mt) for bookings of 7,000 mt of
pig iron, INR 350/mt ($6/mt) for bookings of 10,500 mt and a discount of INR 500/mt ($8/mt) for bookings above 10,500 mt, the sources said.
$1 = INR 60,28