Local Indian pig iron market has showed signs of cooling off slightly with prices moving down by INR 500/mt week on week to INR 29,500/mt ($452/mt) ex-works and with the market critically poised at current levels, traders said on Wednesday, March 21.
“A correction in prices was on the cards after local pig iron prices moved to a six-year high earlier. But whether the downturn will gain momentum and a new bottom emerge will largely depend on uncertain supply-side dynamics,” a Kolkata-based trader said.
“It is possible that the continued high trading volumes and current tight supplies from producers will provide support prices and limit downside risks,” the trader added.
However, according to two other traders, the supply-side support for prices might be short-lived as Neelachal Ispat Nigam Limited is scheduled to complete maintenance and resume production and commercial sales of pig iron early next month.
Also, that fact that no export tenders have been reported from any of the large producers this month could indicate that latter will have higher volumes to push for commercial sale in the domestic market, thereby easing the current tight supply situation faced by dealers.
$1 = INR 65.21