Indian domestic pig iron prices have been stagnating at INR 23,500/mt ($438/mt) ex-works amid lackluster demand and unviable export offers, traders said on Friday, November 2.
"There has been very little buying interest from foundries and the market has remained very quiet. No significant activity has been reported from the export market either, reflecting reports that Chinese export-import volumes in pig iron are down," a trader based in Cuttack in the eastern Indian province of Orissa said.
"An indication of the drying up of export opportunities was evident from reports that Rashtriya Ispat Nigam Limited (RINL) received just one offer at $410/mt against its 30,000 mt export tender which closed on October 26. The steel mill has not yet decided whether to execute the offer or not," the trader said.
According to market sources, there are no major pig iron export tenders pending from producers for shipments in the current months and around 60,000-65,000 mt of exportable pig iron could be diverted to the domestic market in the current month aggravating the oversupply situation.
With Diwali (Festival of Lights) ahead on mid-November, domestic pig iron prices are expected to move sideways within the range of $5-10/mt depending on producers' urgency to liquidate inventories, according to a foundry operator near Kolkata.