Reversing a prolonged bearish phase, local India pig iron prices have surged by INR 800/mt during the past week to INR 23,300/mt ($360/mt) ex-works amid revived restocking and export market opportunities, traders said on Wednesday, November 1.
“Pig iron prices have bottomed out after a sustained five to six weeks of downward movement. Foundries which were staying away from the market and had low stocks are seen to be back in the market,” a Kolkata-based trader said.
“Reports of new export transactions have also improved sentiments and provided fresh support for pig iron prices,” the trader added.
Market sources said that after several months it is reported that the trading firm acting on behalf of Neelachal Ispat Nigam Limited has floated an export tender of 15,000 mt.
Although the volume on offer is comparatively small, the fact that large producers are testing overseas markets after a period of absence, indicates a reversal of the prolonged downturn, the sources added.
At least two other traders said that sharp gains in prices of billets have also led to renewed optimism in the market. They said that billet prices have risen by INR 400/mt during the past week to INR 28,800/mt ($445/mt) and the market expects that this will offer supply-side support to pig iron, with producers using more pig iron for captive conversion to billet production.
$1 = INR 64.60