During the past week, prices in the local Indian pig iron market have remained stable at INR 24,000/mt ($375/mt) ex-works, with a positive outlook despite reports of a fall in transactions volumes in some regions, traders said on Wednesday, August 30.
Market sources said that a marginal fall in billet prices have caused buyers to retreat in target markets in the east of India, but the general sentiment in the market has remained resilient.
The sources said that billet prices have decreased marginally during the past week by about INR 200/mt ($3/mt) to INR 28,500/mt ($445/mt) ex-works, and this has resulted in a knee-jerk reaction among a section of market, causing some market players to avoid concluding fresh pig iron bookings in the east.
“The Indian pig iron market have been surging over the past few weeks. The slight fall in market activity during the past week is not much of a concern as pig iron prices have remained stable and as the medium-term outlook will remain positive driven by active exports by large producers,” a Kolkata-based trader said.
In keeping with market expectations, trading firm MMTC Limited has floated a new export tender during the past week for 30,000 mt of pig iron. Sources said that Steel Authority of India Limited is also expected to enter the export market within the next few days.
According to the sources, the successful conclusion of these export tenders may prompt large producers to announce another hike in base prices for September deliveries.
$1 = INR 63.90