Indian domestic pig iron prices have continued their downtrend during the past week, shedding another INR 200/mt ($3/mt) to INR 19,000/mt ($326/mt) ex-works, with demand showing no signs of recovery, traders said on Monday, June 10.
Two Kolkata-based traders have said that, while on the one hand demand from user segments like foundries is floundering and most foundries are refusing to conclude transactions and carry inventories, producers are maintaining their prices unchanged, leaving traders to cut margins in order to push stocks.
"There has been no easing of oversupply in the market and neither have large producers corrected prices factoring in low demand and offtake. Traders alone are having to bear the brunt of either pushing volumes at the risk of negative margins or of building up inventories," a trader said.
Market sources have ruled out a short-term uptick in domestic prices or demand, stating that, with monsoon rains spreading over the country and construction activities slowing down, reduced demand for construction grade steel will result in a further decrease in demand for steel grade pig iron.