Prices in the local Indian pig iron market have switched from their previous falling trend during the past week, increasing by 500/mt week on week to INR 30,300/mt ($443/mt) ex-works, as producers commenced base price hikes and amid the revival of exports shipments, traders said on Wednesday, May 23.
“The price correction and downturn in the pig iron market proved to be short-lived. Large producers have unexpectedly started to hike base prices late in the month, while the market was expecting any price changes to be seen early next month,” a Kolkata-based trader said.
“The easing of tight supplies expected after Neelachal Ispat Nigam Limited (NINL) restarted pig iron production has not been so much in evidence because excess supply is expected to be absorbed by revived export shipments,” the trader added.
Market sources said that NINL has hiked its pig iron base price by INR 500/mt during the past week and other large producers like Rashtriya Ispat Nigam Limited (RINL) are expected to follow suit within the next seven days.
At the same time, trading firm MMTC Limited on behalf of NINL has floated an export tender of 40,000 mt during the week, one of the largest volumes over the past few months, prompting traders to make fresh bookings in anticipation that tight domestic supplies would persist in the medium term, the sources added.
NINL which has significantly hiked its pig iron production following capital repairs of its blast furnace is aggressively pushing higher volumes overseas, in order to prevent any excess supply in the domestic market from depressing local prices, the sources added.
$1 = INR 68.40