Prices in the local Indian pig iron market have surged during the past week, increasing by INR 1,200/mt to INR 24,000/mt ($374/mt) ex-works, in response to one of the highest revisions in base prices in recent times by large producers, traders said on Wednesday, August 23.
According to market sources, large pig iron producers, led by Neelachal Ispat Nigam Limited (NINL), have hiked their base prices for both steel and foundry grade pig iron by INR 1,200-1,500/mt.
The sources said that this is one of the steepest increases in base prices in recent months and most producers are adopting an aggressive pricing strategy on the back of strong export shipments.
Although no new export tenders have been reported during the past week, the sources said that trading firm MMTC Limited is expected to announce export offers for large volumes before the end of the current month.
“Apart from the strong export performance, the steady increase in prices of scrap, coking coal and billets has contributed to the surge in local pig iron prices,” a Kolkata-based trader said.
The trader pointed out that billet prices at INR 28,700/mt ($448/mt) ex-works are up by about 5-8 percent across India and, since several pig iron producers are setting aside volumes for their own conversion to billet, there is tight supply of pig iron in the local market, causing dealers to push up their pig iron prices.
$1 = INR 64.12