Prices in the local Indian pig iron market have indicated a correction in the past week, with prices decreasing by INR 200/mt week on week to INR 23,300/mt ($356/mt) ex-works, since restocking by dealers has eased during the week in question, although the outlook remains positive, traders said on Wednesday, November 15.
“The small correction was well anticipated after two consecutive weeks of gains. Dealers have restocked and have been taking a pause, leading to a marginal fall in prices,” a Kolkata-based trader said.
“The weakening of prices has been largely led by eastern Indian markets where the slowdown in off-take has been the sharpest. But the downside is likely to be limited in the wake of positives like the revival of export opportunities and demand from foundries,” the traders added.
Sources said that two pig iron export tenders - 25,000 mt from Rashtriya Ispat Nigam Limited and another 15,000 mt from Neelchal Ispat Nigam Limited - have revived the export outlook, and this is expected to offer fresh price support after the present correction.
The sources pointed out that with local billet prices showing a further consolidation at higher levels during the past week, large pig iron producers are expected to step up captive conversion and provide additional supply-side support for Indian pig iron prices.
It is pointed out that billet prices have increased by INR 300/mt to INR 29,100/mt ($444/mt) ex-works.
$1 = INR 65.34