Local Indian
pig iron prices have remained at around INR 18,000/mt ($294/mt) ex-works during the past week amid low volumes and buyers' lack of interest in concluding fresh bookings ahead of the festival season, traders said on Thursday, September 25.
According to a Kolkata-based trader, buyers particularly for foundry grade
pig iron are not concluding any fresh bookings ahead of the festival season and prefer not to lock up liquidity with foundries operating at lower capacity utilization and with demand for foundry products not seeing any uptick.
The trader said that, while prices remained stable in eastern regions following previous declines, traders have continued to offer discounts of around INR 400/mt ($6/mt) in the northern Indian market as traders there are carrying larger inventories.
Market sources said that major domestic producers too like Neelachal Ispat Nigam Limited (NINL) and Rashtriya Ispat Nigam Limited (RINL) had already announced that they will be keeping their base price stable for October shipments, but the slow movement of stocks is forcing the producers to offer volume discounts of around INR 200/mt ($3/mt) on the base price.