Prices in the local Indian pig iron market have continued to strengthen for the seventh consecutive week, with prices moving up by INR 300/mt during the past week to INR 26,500/mt ($418/mt) ex-works, amid price hikes by more producers, the tightening of supplies, and expected higher export earnings, traders said on Wednesday, January 10.
“The pace of upward momentum was slower during the past week but key drivers remained very strong and there is little risk to the price consolidation seen over past months,” a Kolkata-based trader said.
Market sources said that leading pig iron producers like Steel Authority of India Limited’s IISCO Plant and Vedanta Limited have increased pig iron base prices by around INR 1,000/mt over the past week.
At the same time, market participants have feared the tightening of supplies for commercial sale following plant maintenance works commenced by large domestic producer Neelachal Ispat Nigam Limited.
The sources said that billet prices have continued to decline for the second consecutive week, moving down INR 800/mt during the past week. However, the declines in domestic billet prices have not impacted pig iron prices and are considered to be temporary.
Although not new pig iron export tenders have been reported during the past week from any of the large producers, the sources said that producers are reportedly setting aside volumes for overseas shipments anticipating export prices will cross the $360-370/mt FOB mark, up $10-20/mt over shipments concluded in November-December 2017.