Local Indian pig iron prices have remained unchanged during the past week at around INR 17,500/mt ($282/mt) ex-works, amid negligible numbers of transactions, traders said on Monday, November 4.
According to two Kolkata-based traders, most buying activity had come to a virtual halt by around mid-week last week ahead of festivals and accounting book closures of market intermediaries and actual users, resulting in stagnant conditions.
Users in the small and medium-scale foundries have been keener to liquidate their inventories and not restock in order to maintain their cash liquidity for year-end considerations, while large foundries with links with large manufacturing industries have waited for fresh orders before deciding to restock their pig iron inventories, the traders said.
There have been no reports in the market of new export orders for December shipments, and this has further depressed sentiments, the traders added.
Market sources, however, said that local pig iron prices could gain in the range of INR 250-500/mt ($4-8/mt) in select northern and central Indian markets since traders have almost completed liquidating inventories and will look at restocking, though for small volumes given the depressed demand situation.
$1=INR 62.15