Indian local pig iron prices broke out of sideways movement during the past week, gaining INR 800/mt ($12/mt) to INR 17,300/mt ($257/mt) ex-works, on renewed market activity and higher bookings by dealers, trader said on Wednesday, March 9.
“There are mixed trend among producers. While Neelachal Ispat Nigam Limited (NINL) had already announced a price hike early in the month, Rashtriya Ispat Nigam Limited (RINL) announced last week that its base pig iron prices would be maintained through March,” a Kolkata based trader said.
“But this did not impact sentiments in the market. Most dealers are seen to be re-stocking steel grade pig iron riding the strong price trends seen in the billet market and wide anticipation of pickup in demand for long products from the construction sector,” he added.
A section of the market maintained that the unchanged base price of pig iron by producers are not expected to sustain as latter would be forced to adjust prices in response to the expected rise in price of iron ore.
Much of renewed interest in fresh bookings by dealers was to keep a step ahead of such a price hike by producers, the traders said.
Both RINL and Steel Authority of India Limited (SAIL) would take a clue from firm prices in the secondary market to adjust base price which the market expected could be around INR 500/mt ($7/mt), the traders added.