Downward pressures gained momentum for the second consecutive week in local Indian pig iron market with prices slumping INR 1,000/mt ($15/mt) to INR 16,700/mt ($258/mt) with producers commencing price cuts for the month and negatives in exports, traders said on Wednesday, June 6.
“With producers’ beginning to adjust prices for July deliveries, market apprehensions of rising inventories stands vindicated,” a Kolkata based trader said.
“Every pig iron consuming sectors including large foundries are seen to be drastically reducing fresh bookings amidst sluggish demand for finished products while all efforts to get exports going seeming to fail too,” he added.
Market sources said that Neelachal Ispat Nigam Limited (NINL) reduced base price by INR 1,000 ($15/mt) with the market expecting Rashtriya Ispat Nigam Limited (RINL) too make a similar announcement later this week.
Negative reports on the export front too attributed toward aggravating bearish sentiments in the market with aggregate pig iron exports from India dipping 90% during January-June 2016 at 31,500 mt.
This poor export performance İSreflected in trading firm, MMTC Limited cancelling an export tender for 15,000 mt last week following poor response from overseas bidders. It might be pointed out that this is the third time that the trading firm had to cancel an export tender over the past one and half month, market sources said.