Local Indian pig iron prices have weakened by around INR 200/mt ($3/mt) during the past week to INR 19,000/mt ($317/mt) ex-works, amid sluggish demand due to monsoon rains and given the expected adjustment of base prices by producers in July, traders said on Wednesday, July 2.
According to a Kolkata-based trader, demand for steel grade pig iron is seen to be softening as flat steel producers are reducing off-take of pig iron in anticipation of a slowdown in construction activities because of monsoon rains.
Most pig iron traders have also been taking a pause from making fresh bookings since large producers are reportedly considering lowering prices in July, he said.
Sources said that major producers like Neelachal Ispat Nigam Limited (NINL) and Rashtriya Ispat Nigam Limited (RINL), which had increased their base prices by around INR 1,500/mt ($25/mt) over the last two months due to the rise in iron ore prices, are considering downward adjustments since the market has not been able to absorb the hike.
While there has been no definitive indication of the size of reduction, the market expects producers to lower their pig iron prices by INR 300-500/mt ($5-8/mt), the sources added.