The downward movement of local Indian pig iron market has stopped during the past week with prices remaining largely stable at INR 16,200/mt ($253/mt) ex-works, except in certain regions in the north of India, traders said on Wednesday, May 13.
According to a Kolkata-based trader, prices have stabilized across western and central Indian markets amid modest buying support for foundry grade pig iron.
However, in markets around Punjab in northern India, prices for steel grade pig iron have moved down by about INR 300/mt ($5/mt) in reaction to weakening billet prices, he said.
Sources said that local pig iron prices are showing divergent trends across markets, possibly because of the higher level of stocks at dealers in the northern region, while in the western and central Indian markets dealers have been able to liquidate stocks at discounts over the past two weeks.
However, overall, prices are expected to move sideways within a narrow range in the short term in the absence of any demand uptick and the steady weakening of billet prices, the sources said. A fresh export tender for 30,000 metric tons of pig iron floated by Rashtriya Ispat Nigam Limited (RINL) for late June shipment has failed to have any significant positive impact on market sentiment, the sources added.
$1 = INR 64.04