In the past week, Indian domestic pig iron prices have remained unchanged at around INR 22,500/mt ($416/mt) ex-works amid low demand from foundries, traders said on Monday, March 25.
According to Kolkata-based pig iron traders, foundries in the southern region have been forced to drastically reduce capacity utilization in face of power shortages, resulting in a slump in volumes of pig iron being booked.
In the southern Indian market, pig iron is being offered with a discount by traders at INR 22,000/mt ($406/mt), compared to the marginally higher INR 22,500/mt in northern and eastern India, the traders said.
According to market sources, despite persistent low demand from foundries, local pig iron prices have remained unchanged due to improved sentiment following the successful execution of export orders by leading producers.
Large producers like Neelachal Ispat Nigam Limited (NINL) and Rashtriya Ispat Nigam Limited (RINL) which, as reported by SteelOrbis, had been successful in concluding export orders for a combined volume of 100,000 mt, had reportedly clinched the orders in question at the average price of $411/mt FOB, which was higher than market expectations of around $400/mt FOB.
However, several traders told SteelOrbis that the export orders will have a limited positive impact on domestic prices since several producers have already announced fresh domestic sales starting next week, indicating that export volumes have not eased supply side pressures.