Local Indian pig iron prices have continued to consolidate at higher levels, rising by INR 200/mt during the past week to INR 30,000/mt ($463/mt) ex-works amid restricted supplies from producers, traders said on Wednesday, March 14.
“Pig iron prices have continued to consolidate above a six-year high touching the INR 30,000/mt ($463/mt) mark amid reports that producers are supplying restricted volumes and that traders are not receiving the full amount of volumes booked,” a Kolkata-based trader said.
Sources pointed out that, not only are producers limiting commercial sales of pig iron, but they also setting aside higher volumes for their own captive conversion to billet considering the surge in exports of billets from the country.
Market reports indicated that in the past week Steel Authority of India Limited floated a billet tender for 13,500 mt, while Rasthriya Ispat Nigam Limited concluded an export transaction for 25,000 mt of billet with sources maintaining that, due to increased billet export opportunities, commercial sales of pig iron by producers will continue to tighten and offer fresh support for prices.
The sources said that, although no other new pig iron export tender from any of the domestic producers has been reported in the market during the past week, high domestic prices and low inventories at producers are expected to limit overseas shipments unless offers move up sharply above $380/mt FOB - the average export price of pig iron exporters during February.
$1 = INR 64.84