Local Indian pig iron prices have remained largely stable in the past week at around INR 26,650/mt ($383/mt) ex-works amid unchanged market conditions, but prices are reported to be higher in select regions, traders said on Wednesday, April 17.
Market sources said that pig iron prices are at higher levels in the range of INR 27,000-27,200/mt ($388-390/mt) in regional markets around Raipur. The sources said that prices in this regional market are trending higher largely because of an upward correction in reaction to sharp declines in earlier weeks.
At the same time, foundries in the region also slightly increased their restocking volumes, leading to a sharper revival in Raipur prices, the sources added.
“Overall market conditions have remained in the negative zone as indicated by low restocking by key user industries, while higher prices of billet have failed to percolate down to pig iron as expected earlier,” a Kolkata-based trader said.
“Even though a major producer like Steel Authority of India Limited (SAIL) has been able to push sales of 18,000 mt of pig iron, it was able to do so only by holding a second auction after the first one held earlier in the month had failed to attract bids, reflecting the persistent sluggishness of demand and the reluctance of dealers to restock,” the trader added.
$1 = INR 69.5