Local Indian pig iron prices have indicated mixed trends during the past week, remaining stable in most regions at INR 28,000/mt ($394/mt) ex-works but have been quoted marginally lower in central regional markets around Raipur at INR 27,800/mt ($390/mt), traders said on Wednesday, February 27.
The traders said that higher levels were sustained during the past week supported by a fresh export thrust by large producers, adding that the marginally lower quotations in central markets have been largely owing to a few medium-scale producers in the region pushing volumes to manage inventories.
According to the traders, the lower offers around Raipur are a “regional discrepancy’ and do not reflect the overall stable trend as large producers have been seen to be pushing exports and this the market expects to further ease supply-side pressures on prices.
Market sources said that trading firm MMTC Limited acting on behalf of Neelachal Ispat Nigam Limited (NINL) floated an export tender for 30,000 mt of pig iron during the past week, the second offer after concluding an export tender for a similar volume earlier in the month, indicating the strong push towards overseas shipments.
Rashtriya Ispat Nigam Limited (RINL), on the other hand, cancelled an export tender floated early in the month for 30,000 mt of pig iron and plans to issue a fresh tender expecting higher bids in view of the changed sentiments in the export markets.
Though unconfirmed, a section of the market believe that bids received by RINL averaged around $335/mt FOB but the producer is optimistic of increasing realizations to levels of $345/mt FOB through fresh bidding.
$1 = INR 71.30