The Indian domestic pig iron market has showed no significant change during the past week with prices remaining at the higher level of INR 23,500/mt ($415/mt) ex-works, while demand has remained sluggish and transaction volumes are low, traders said on Monday, January 22.
Several traders based in the eastern Indian province of Orissa told SteelOrbis that large producers have given no indication of rolling back price increases made earlier in the month and buyers in the foundry sector are hamstrung in buying stocks at current prices as they are not in a position to pass on costs to buyers of casting and forging products in view of low demand.
According to sources, there is no information regarding imminent export tenders from large producers like Rashtriya Ispat Nigam Limited or Neelachal Ispat Nigam limited over the next month or two and so it is possible that these two producers will push more of their output into the local market, thereby placing new pressure on domestic pig iron prices.
But buyers are not too sure on new supplies' impact on prices and hence are keeping their buying commitments to a minimum, the sources said.
"The domestic pig iron market has lacked short-term direction with prices at high levels and demand low. Most user industry segments are waiting and watching the tussle of nerves between supply and demand," an eastern India-based medium-sized pig iron producer said.
"In the short term, local prices may move sideways, fluctuating within a narrow band of INR 250-500/mt, depending on local variations in demand," the producer said.