Local Indian pig iron prices have remained unchanged at around INR 18,200/mt ($301/mt) ex-works during the past week, while price cuts earlier in the month by producers have failed to evoke any fresh buying interest, traders said on Wednesday, August 27.
According to a Kolkata-based trader, transaction volumes for steel grade pig iron have remained negligible against steadily falling demand for long products during the current rainy season and low construction activity across the country.
At the same time, modest demand for foundry grade pig iron is being met by dealers from existing inventories and the latter are not inclined to conclude fresh bookings despite the INR 200/mt ($3/mt) price cut announced by producers earlier in the month, the trader added.
Market sources said that producers are keeping a close watch on the 30,000 mt export tender from the trading house MMTC on behalf of Neelchal Ispat Nigam Limited (NINL). Another export tender for 40,000 mt from Rashtriya Ispat Nigam Limited (RINL) is scheduled to be opened later this week.
The price bids for the MMTC tender are scheduled to be opened on Wednesday, August 27, and offers will determine whether the large producers will keep pushing volumes into the domestic market or focus on overseas shipments if the export prices received are attractive, the sources said.
$1 = INR 60.41