Local Indian pig iron prices have increased by INR 200/mt ($3/mt) during the past week to INR 20,500/mt ($301/mt) ex-works on the back of the improved export situation and amid prospects of a slight supply-side tightening, traders said on Wednesday, December 21.
“A general increase in bids received in export tenders has prompted the market to believe that large producers will be shifting large volumes of supplies to the overseas market and this has provided support for local market prices” a Kolkata-based trader said.
“However, the upside potential from current levels will be limited as the demand side, particularly in the foundry segment, continues to remain depressed. Foundries are not making large-volume bookings given the continuing liquidity crisis; at least this is true for medium-size and small-scale foundry units,” the trader added.
Some market sources have said that at least one producer has cancelled an export tender for 20,000 mt after receiving bids, in anticipation that export bids in the New Year will be at higher price levels and that the postponement of transactions will yield better margins.
$1 = INR 67.89