Prices in the local Indian pig iron market have continued to increase for the eight consecutive week, rising by INR 100/mt during the past week to INR 26,600/mt ($416/mt) ex-works, amid the tightening of supplies and higher export prices, traders said on Wednesday, January 17.
“Even though the surge in price seen earlier seemed to ease during the past week, the bullish sentiment in the market remains intact,” a Kolkata-based trader said. “The tightening of supplies available for commercial sale from large producers has continued to fuel the bullish market sentiment,” he added.
Sources said that one of the largest producers of semi-finished products, Neelachal Ispat Nigam Limited, has lowered pig iron volumes for commercial sales significantly following repair works at its plant and this has skewed the demand-supply balance in the market, enabling prices to move to higher levels.
The sources said that, though no new export tenders are reported by any of the large producers, the latter are reportedly anticipating a sharp increase in export price margins and are holding back volumes for overseas shipment, further tightening of the volumes on offer in the local market
This is in sharp contrast to average realizations by producers for pig iron exports in the range of $350-360/mt FOB basis from transactions concluded in November-December 2017, the sources pointed out.
$1 = INR 63.88