In the past week, Indian
pig iron producers have kept prices unchanged at the previous week's level of INR 23,000/mt ($425/mt) ex-works. However, buyers in the southern and northern markets are offered discounts of $15/mt on bookings above 30,000 mt, traders said on Thursday, December 13.
"Large producers like Rashtriya Ispat Nigam Limited (RINL) and Neelachal Ispat Nigam Limited (NINL) have already announced they will keep December prices unchanged," said an official at RINL which operates a steel mill in the southern Indian port town of Vishkhapatnam.
"However, we are offering some discounts based on volume off-take and location of buyers for relationship marketing, because we are aware foundries are operating at low capacities and demand is tepid," the official added.
According to market sources, Sesa Goa, with a 200,000 mt per year
pig iron plant in western
India, has decided to cut production by 50 percent and the market is expecting oversupply to ease over the next few months.
Domestic
pig iron prices in
India may see some stability in the coming months, if NINL's pending export tender of 30,000 mt for January shipment receives offers above $420-430/mt FOB Paradip port, which would prompt other producers to re-enter the export market, traders said.
Besides, producers are not in a position to reduce base prices further, given rising iron ore prices from domestic mines and the high cost of imported coke, the traders said.