Local Indian pig iron prices have continued to consolidate at higher levels, gaining INR 500/mt ($7.5/mt) during the past week to around INR 17,500/mt ($266/mt) ex-works amid tight supply and aggressive buying activity, traders said on Wednesday, September 23.
“It is difficult to remember the last time local pig iron prices sustained its upward movement for four consecutive weeks,” said a Kolkata-based trader.
“Most traders have aggressively liquidated stocks during the sustained downturn and have been back in the market to restock, anticipating prices will continue to consolidate,” he said.
“However, a section of the market continues to be bearish since, while demand for steel grade pig iron had improved, demand for foundry grade pig iron has remained very weak,” the trader added.
Market sources said that, with the monsoon season nearing its end, a revival of construction activity is pushing up billet prices, contributing to the increased demand for steel grade pig iron. However, demand for casting and forgings from foundries as well as for forging exports is down, while foundries continue to face high energy tariffs, the sources added.