Local Indian pig iron prices have consolidated at the higher level of INR 19,000/mt ($315/mt) ex-works during the past week amid higher transaction volumes, traders said on Wednesday, April 30.
According to a Kolkata-based trader, the gains of the previous week have been maintained as market sentiment has improved, prompting buyers in the foundry segment to book new volumes.
However, he added the consolidation of prices has been driven by market sentiments linked to a new Indian government taking charge next month, which is expected to give a policy thrust to the manufacturing sector.
Nevertheless, demand for foundry products has remained depressed as reflected by dismal sales figures reported by the automobile sector, he added.
Market sources maintain that pressures on local pig iron prices will resurface in the absence of any fundamental change in oversupply or of any demand uptick.
Any government policy initiative is unlikely to change the demand-supply negatives of the pig iron industry in the short and medium term, the sources added.
The market is expecting large pig iron producers to lower their prices next month and drive volumes into the market in response to lower prices and increased supplies of local iron ore, the sources said.
$1 = INR 60,25