Local Indian pig iron prices have remained stable during the past week at INR 18,900/mt ($285/mt) ex-works, even as producers are seen to be marginally reducing prices, traders said on Wednesday, May 4.
“At least one large producer announced a marginal reduction in base prices for May deliveries, but the market has yet to react to the price cut,” a Kolkata-based trader said.
“We will have to wait and see if dealers pass on the benefit of the lower base price to end-users or maintain current prices to improve their own margins. A clearer picture is expected to emerge early next week once dealers fix their pricing strategy and until then the market will continue to have few buyers,” the trader said.
On Monday, May 2, Neelachal Ispat Nigam Limited (NINL) announced a price reduction by INR 400/mt ($6/mt) for the first time in the current year, which market sources said was a possible reaction to mounting stocks and a price correction that had been surfacing since late last month.
Another large producer, Rashtriya Ispat Nigam Limited (RINL), is expected announce May prices over the next few days and most dealers are waiting for more producers to unveil the current month’s pricing before adjusting their own prices, sources said.
A section of market sources has maintained that, since most dealers are carrying large inventories, a price cut of at least INR 200/mt ($3/mt) is on the cards next week.