Prices in the local Indian pig iron market have continued to move up for the sixth consecutive week, increasing by INR 200/mt week on week to INR 26,200/mt ($413/mt) ex-works, amid reports of short supplies in the market even though trading volumes have dipped in reaction to the fall in billet prices, traders said on Wednesday, January 3.
“Even though the rising pace of prices slowed during the week, current pig iron prices are at a 46-month high amid one of the longest rallies in the market in recent years,” a Kolkata-based trader said.
“The upward momentum of the market eased during the week against the backdrop of lower trading volumes largely caused by the slump in billet prices. But downside risks from current levels will be limited by high expectations from the export market and lower commercial sales by large pig iron producers,” he added. Market sources said that billet prices have reversed their recent trend, decreasing by INR 200/mt to INR 34,300/mt ($540/mt) ex-works, which has impacted trading volumes and sentiment, but not to the extent of reversing the gains in pig iron prices.
The sources said that, though no new export tenders are so far reported from large producers, it is stated that producers are tightening supplies to the local markets in order to increase export shipments later in the month and this has provided support for local pig iron prices, even though traders and end-users like foundries are cautious about concluding new bookings.
$1 = INR 63.47