Downward pressures have continued to be observed in the local Indian pig iron market, with prices losing ground for the second consecutive week, edging down by INR 200/mt week on week to INR 26,200/mt ($411/mt) ex-works, amid the softening of international prices and the fall in billet prices, traders said on Wednesday, January 31.
“Pig iron prices are on a downward trend as producers’ expectations of sharp rise in export prices have not materialized. Local billet prices are also failing to hold ground and producers are pushing more pig iron volumes for commercial sale rather than using them for captive conversion,” a Kolkata-based trader said.
Market sources said that producers’ expectations early in the month of higher export prices of around $400/mt on FOB basis have been nipped in the bud by the fall in international prices.
According to the sources, under the current circumstances, there have been no reports of export tenders from any of the large producers during January and instead they are pushing more pig iron volumes into the local Indian market, putting supply-side pressure on prices.
At the same time, local billet prices have also edged down by around INR 200/mt to levels of around INR 32,800/mt ($516/mt), reducing the incentive of pig iron producers to increase captive conversion to billets, the sources said.
$1 = INR 63.68