Local Indian pig iron prices have edged down marginally by INR 100/mt ($1.50/mt) during the past week to INR 18,900/mt ($284/mt) amid sluggish market activity, traders said on Wednesday, April 27.
"The slight softening of prices is not a matter of concern since supplies continue to be tight. The marginal fall was essentially a mild correction to previous price increases, but the market does not expect it to become a trend," a Kolkata-based trader said.
"There are lots of reports of producers getting ready to increase their prices and possibly the market is a little nervous on the issue of two price hikes in less than a month," the trader added.
Market sources said that government trading house MMTC Limited floated an export tender on behalf of Neelachal Ispat Nigam Limited (NINL) on Tuesday, April 26, for 40,000 mt, which was 10,000 mt higher than any of its previous export tenders over the last six months.
The sources also said that most producers like NINL and Rashtriya Ispat Nigam Limited (RINL) are looking to increase base prices by about INR 500-700/mt ($8-11/mt) over the next few days.
$1 = INR 66.44