Over the past week, prices in the local Indian pig iron market have continued to surge for the third consecutive week, increasing by INR 1,600/mt to INR 31,500/mt ($472/mt) ex-works, amid a further tightening of supplies and rising billet prices, traders said on Wednesday, April 25.
Traders said that local pig iron prices have skyrocketed by as much as INR 3,500/mt over the past three consecutive weeks.
“The tightness of pig iron supplies is bordering on acute. The volumes required by dealers are not available from any of the large producers fuelling the recent price surge,” a Kolkata-based trader said.
“The supply position is unlikely to improve immediately with producers like Vedanta stopping all sales of pig iron in the wake of a lack of raw materials from its mines in Goa and other producers are either not increasing production of pig iron or are setting aside higher volumes for captive conversion to billets in view of rising billet prices,” the trader added.
According to market reports, billet prices have gained INR 500/mt to around INR 38,000/mt ($569/mt) in the northern Indian market of Mandi Govindgarh over the past week.
At least two other traders said that large Indian producers were expected to leverage the current market situation to increase base prices later this month, including Neelachal Ispat Nigam Limited which is expected to resume production during the week ahead after the maintenance shutdown of its blast furnace.
$1 = INR 66.80