Prices in the local Indian pig iron market have continued their uptrend for the third consecutive week, increasing by INR 1,000/mt ($15/mt) week on week to INR 20,500/mt ($308/mt) ex-works, amid hiking of prices by certain producers, tightening of supplies, and high-volume fresh bookings particularly for steel grade pig iron, traders said on Wednesday, September 28.
“Local pig iron prices have moved up by a total of INR 3,200/mt ($48/mt) over the past three consecutive weeks to a near 20-month high. Both exports and high-volume bookings over the past weeks have tightened supplies, providing bullish support for prices,” a Kolkata-based trader said.
“Producers are ready to take advantage of strong market conditions to ramp up prices, hence triggering a fresh flurry of bookings,” the trader added.
In fact, market sources said that Neelachal Ispat Nigam Limited (NINL) has already taken a lead in adjusting base prices, increasing its price by INR 3,000/mt ($45/mt), which the sources said is the highest price hike by a producer in recent years.
The sources said that, despite the rise in global demand for pig iron and large producers in Ukraine and Russia increasing their offers, Indian pig iron exporters are expected to slow down if not halt overseas shipments in view of rising domestic demand and prices.
Citing example of the MMTC Limited which cancelled an export tender for 30,000 metric tons earlier in September, the sources said that no new export tenders are expected in the coming month either.
$1 = INR 66.46