Indian domestic
pig iron prices have continued their downtrend, declining to INR 20,500/mt ($373/mt) ex-works, down $9-18/mt since last week, with a few leading producers slashing their prices and diverting a large export surplus to the local market, traders said on Friday, December 4.
"
Pig iron prices have come under renewed pressure in the New Year from price cuts by large producers, who also have large volumes for sale in the domestic market after export tenders flopped," an Orissa-based trader said.
"Rashtriya Ispat Nigam Limited (RINL) had lowered its ex-works prices by INR 500/mt ($9/mt) in the last week of December, cutting its prices for the second time in the month," the trader said.
In the first week of January, RINL along with other producer Neelachal Ispat Nigam Limited has reduced their prices further by INR 1,000/mt ($18/mt).
Market sources state that RINL's domestic sales offer for 50,000 mt of
pig iron has evoked a tepid response from traders and foundries after the southeast
India-based steel mill's export tender of 30,000 mt for January shipment failed to elicit any remunerative offer.
Sources have told SteelOrbis that small-scale
pig iron producers located in proximity to Kolkata in eastern
India have cut their ex-works prices by about INR 800/mt ($15/mt), since they are facing problems in securing orders even for small volumes of 500-1,000 mt from foundries located in the same region.