Local Indian pig iron prices have remained stable during the past week at INR 28,000/mt ($403/mt) ex-works with most large producers keeping base prices unchanged for current month deliveries, traders said on Wednesday, June 12.
“Most large producers like Neelachal Ispat Nigam Limited (NINL) and Tata Metaliks have announced unchanged base prices for the current month,” a Kolkata-based trader said.
“The producers’ decision to maintain base prices unchanged despite rising input costs of iron ore is an indication of sluggish movement of stocks and a negative outlook. The fact that there has not been any export tender floated over the past week would also ensure higher supplies of material in the local markets and keep prices under pressure,” the trader added.
Market sources said that the continuing slide in billet prices over the past few weeks will also put additional pressure on pig iron prices with producers lowering pig iron volumes for captive conversion into billets and continuing to push higher pig iron volumes for commercial sale.
The sources said that billet prices have lost INR 300/mt over the past week and are down INR 600/mt over the last two consecutive weeks.
$1 = INR 69.32