Prices in the local Indian pig iron market have remained stable during the past week at INR 28,000/mt (394/mt) ex-works, as sentiment has improved amid reports of positive export shipments and a good response to auction sales, traders said on Wednesday, February 20.
“Prices are seen to be consolidating across all regional markets. Prices have been supported by reports of successful export shipments and a good response at auction sales, which have eased supply-side concerns,” a Kolkata-based trader said.
“There are a lot of expectations that, if such support is sustained over the next two weeks, large producers will likely hike their base prices,” the trader added.
Market sources said that trading firm MMTC Limited was successful in concluding an export shipment for 30,000 metric tons of pig iron through the tender route. The sources said that reports indicated that the export price was in the range of $325-330/mt FOB.
The sources also pointed out that auction sales conducted by Steel Authority of India Limited (SAIL) during the past week received an improved number of bids which averaged 10-15 percent above the reserve price.
$1 = INR 71.14