Prices in the local Indian pig iron market have increased for the second consecutive week, rising by INR 200/mt week on week to INR 23,500/mt ($362) ex-works, against the backdrop of price hikes by smaller producers, restocking by foundries and strong billet prices, traders said on Wednesday, November 11.
“There has been an all-round rebound in the prices of pig iron end-users. Small private sector pig iron producers have increased their prices because of this, although larger producers are seen to be keeping their base prices unchanged for current month deliveries,” a Kolkata-based trader said.
At least two other traders said that, while the current round of price consolidation has been triggered by restocking by foundries, pig iron prices have received additional support as billet prices have remained at high levels. They said that billet prices have remained at higher levels of INR 28,800/mt ($443/mt) ex-works, while there are market expectations of strong demand for long products stemming from recent announcements of large government investments in road and port construction.
The traders said that fresh infrastructure investments from the government provide a strong incentive for large producers to set aside higher volumes of pig iron for captive conversion and this will provide supply-side support for pig iron prices.
$1 = INR 64.99