Local Indian pig iron prices have surged by INR 1,000/mt during the past week to touch a six-year high at INR 29,800/mt ($459/mt) ex-works, amid a combination of the steady tightening of supplies from large producers and the latter commencing price hikes for the current month, traders said on Wednesday, March 7.
Accordingly, local pig iron prices have surged by a total of INR 2,600/mt in the course of the last two weeks, with market sources maintaining that dealers are not getting adequate volumes, particularly for steel grade pig iron.
The source said that with Vedanta Limited and Tata already increasing their pig iron base prices for deliveries in the current month during the past week, other large Indian producers are expected to follow suit over the next few days. The sources said the base price hikes are expected to average around INR 1,000/mt.
“With pig iron prices touching a six-year high and the supply-side tightening not expected to ease for another month when Neelachal Ispat Nigam Limited is scheduled to resume production, the market expects a further price surge, with prices expected to breach the INR 30,000/mt ($462/mt) mark this month,” a Kolkata-based trader said.
“The extent of the supply shortage can be gauged from the fact that the price increases over the last two weeks have occurred even without any export shipments being concluded by any of the mills,” the trader added.
$1 = INR 64.89