This week, Indian domestic
pig iron prices have showed little change, stagnating at lower levels of INR 20,000/mt ($371/mt) ex-works, with the lack of equilibrium between supply and demand persisting in the market, traders said on Friday, January 25.
"There is a lot of anticipation that
pig iron prices may have bottomed out. But with incipient demand still very weak, foundry buyers are not sure and have refrained from concluding any large bookings during the week," a Kolkata trader said.
"Besides, there are no reports of any large export inquiries received by the major domestic
pig iron producers. Hence, the market perception of large oversupply of export surplus has persisted, resulting in a bearish outlook," the trader added.
According to market sources, few large producers have cut production despite excess supply and, without the export markets soaking up this excess, the uncertainty over prices bottoming out has continued.
"
Pig iron prices will continue to remain weak and move sideways within a fluctuation range of INR 200-300/mt ($4-5/mt) until such time large export offers are reported by producers," a foundry operator in the outskirts of Kolkata said.