Local Indian pig iron prices have remained stable during the past week at around INR 16,500/mt ($247/mt) ex-works even though base price increases by producers have started to be observed, traders said on Wednesday, January 13.
According to market sources, Neelachal Ispat Nigam Limited (NINL) announced a hike of INR 400/mt ($6/mt) in prices late on Tuesday evening and a section of the market said that other producers including Rashtirya Ispat Nigam Limited (RINL) will also consider a similar move later this month.
This is the second time that NINL has increased its prices within the last two weeks, the sources said.
“Price hikes by producers have not had an immediate impact at the dealer level since, for one, it came too late in the day yesterday, January 12. At the same time, market participants, who are mostly carrying sufficient stocks, are unsure whether higher prices will be absorbed, particularly for foundry grade pig iron,” a Kolkata-based trader said.
“The market is currently on an edge and could move in either direction. Producers will be keen to ramp up prices to improve margins as the fiscal year comes to a close but demand continues to remain sluggish as volumes for foundry grade are very low as castings and forgings are facing a demand slump,” the trader added.
Pointing out the persistent negatives in the market, sources said that RINL was once again forced to extend the deadline for receiving export tenders for a consignment of 30,000 mt after failing to receive any bids within the earlier deadline of January 11 and that oversupply in domestic market might continue to put pressure on prices despite producers’ attempts to push prices up.