Pressure has continued to mount on local Indian pig iron prices for the second consecutive week, which prices softening by INR 700/mt ($10/mt) week on week to INR 18,300/mt ($270/mt) ex-works, amid oversupply from producers and high inventories, traders said on Tuesday, May 25.
“Reports indicate that most producers have increased the supply of high volumes into the market even though most dealers are saddled with high inventories, which has further weakened prices during the past week,” a Kolkata-based trader said.
“Neelachal Ispat Nigam Limited (NINL) has been expected to announce a new price list within the next few days. And since NINL prices are known to set the trend, there are expectations that a base price correction is around the corner in view of the large volumes floating in the market,” the trader added.
Sources said that an export offer for 40,000 mt floated by trading firm MMTC Limited on behalf of NINL has received just one bid. However, there is no indication of whether the single bid will be accepted by the trading firm and the market has concerns of further export surpluses flowing into the domestic market, further aggravating the oversupply in the market.