Local Indian pig iron prices have increased by INR 300/mt during the past week to INR 25,000 /mt($391/mt) ex-works, reaching a three-year high, due to the steady tightening of supplies in domestic market and since Indian producers have increased their volume offers for exports, traders said on Wednesday, September 13.
“Pig iron prices have increased by INR 1,000/mt over the past two consecutive weeks. Apart from rising exports, domestic prices are also impacted by high international scrap prices and lower scrap availability in the domestic market” a Kolkata based trader said.
“Billet prices are also at higher levels and most large pig iron producers are setting aside much higher volumes for own conversion and hence pig iron volumes for merchant sales in the market is very tight leading to spurt in prices” the trader added.
At least two other traders said that large producers are increasing export volumes since they were expecting overseas prices to high above $325/mt FOB. Some exporters are even holding back export tenders amidst expectations of that export prices could go beyond $350/mt FOB mark.
Market reports suggested that Neelachal Ispat Nigam Limited has postponed the close of an export tender of 30,000/mt from September 9 to September 15, though no official reason is stated by the pig iron producer.
$1 = INR 63.97