Indian domestic pig iron prices have remained stable at around INR 23,500/mt ($432/mt) ex-works amid fluctuating supplies and persistent sluggish local demand, traders said on Monday, April 29.
"Steel Authority of India Limited (SAIL) has reported lower pig iron production during April but at the same time producers like Neelachal Ispat Nigam Limited (NINL) have continued to push larger volumes into the local markets at higher prices," Orissa-based traders said.
"The market was uncertain over the supply situation. While there has been every indication of oversupply, there has been a continued flow of new volumes into the market at higher price levels despite low demand," the traders said.
Market sources said that foundries not concluding transactions for large volumes, with several units located in southern and central India operating at low capacities and they have not been in a position to risk margins with high-priced pig iron.
There is no direction in the pig iron market since producers have persisted with high prices without relation to demand, according to market sources, who added that no confirmation was available on whether the low demand was resulting in an inventory pile-up at producers.