Local Indian pig iron prices gain amid regional disparities

Wednesday, 13 February 2019 13:51:22 (GMT+3)   |   Kolkata

Prices in the local Indian pig iron market have trended upwards during the past week, increasing by INR 1,000/mt to INR 28,000/mt ($396/mt) ex-works, amid improved sentiments prompted by fresh export tenders floated by producers, but the gains have been muted in a few regional markets, traders said on Wednesday, February 13.

Market sources said that in regional markets like in central India around Raipur the gains in pig iron prices were around INR 500/mt to INR 27,300/mt ($387/mt) ex-works, which the sources attributed to a few producers in the region pushing more material in the market and foundries located in the region were seen to be booking smaller volumes than compared to end-users in the east.

“Regional disparities in prices have become marked in the market over the past few weeks. This is largely owing to sharp demand differentials across regions and producers in reach region adopting a different pricing to push volumes in the market, factoring in variations in demand,” a Kolkata-based trader said.

“Prices are stronger in the east and southern regions as producers here have been aggressively pushing volumes overseas again and the market has expected this to ease supply-side pressures,” the trader added.

Sources said that, despite trading firm MMTC cancelling a 30,000 metric ton export tender earlier in the month, export sentiments have improved during the past week with Rashtriya Ispat Nigam Limited (RINL) returning to the export market floating a new export tender for 25,000 metric tons.

At the same time, the e-auction conducted by Rourkela Steel Plant (RSP) of Steel Authority of India Limited has also seen an improvement in bids, leading to improved sentiments in eastern region, the sources added.

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