Prices in the local Indian pig iron market have continued to increase for the fourth consecutive week, rising by INR 900/mt week on week to INR 25,200/mt ($394/mt) ex-works, with producers increasing prices and amid higher billet prices, traders said on Wednesday, December 20.
Sources said that, surprising the market, most large producers went in for a mid-month hike in prices, increasing them by about INR 500/mt, citing sharp increases in coking coal and billet prices.
“Pig iron producers are setting aside more and more volumes for captive conversion into billets and export shipments. With commercial sale volumes dipping in the local Indian market, prices are surging for end-users, particularly with foundries having to pay more in view of tight supplies,” a Kolkata-based trader said.
Sources said that local billet prices continued to strengthen moving up INR 100/mt during the past week to INR 31,600/mt ($494/mt) ex-works, with pig iron producers reducing commercial sales of pig iron and increasing their billet production.
On the export front, Rashtriya Ispat Nigam Limited, finalized an export tender during the past week for 25,000 mt of pig iron for end-of-December delivery. While the export price for this shipment is unknown, sources said that Indian pig iron offers had risen by $5-10/mt to $355-360/mt FOB.
$1 = INR 64.11