Indian domestic pig iron prices have remained stable since last week at INR 23,500/mt ($438/mt) ex-works, on low volumes and few transactions amid spate of holidays for Hindu and Islamic festivals, Indian traders said on Thursday, October 25.
"Activity in the market was dull because of holidays that will continue till the month end and traders and buyers preferred to defer transactions," a trader based in eastern Indian province of Orissa said. "Domestic pig iron prices would remain range bound for next week or two in absence of any definitive change in demand from the foundry sector. With Indian pig iron exports almost at a standstill, domestic prices would continue to be under downside risks," the trader added.
Market sources said that domestic price trends would be determined by fate of pending export tenders from larger pig iron producers like Rashtriya Ispat Nigam Limited (RINL), the Indian government-owned steel mill.
RINL's export tender for 30,000 mt of pig iron did not receive any offer before its two earlier closing dates on October 3 and October 15. The third closing date for this same tender had been set for October 26 and traders said that unattractive offer for the shipment or cancellation of the tender would depress market sentiments and increase supplies in the domestic market.
"Chinese pig iron ex-factory prices have edged up marginally to levels of $416/mt. If this translates into better export offers in India in range of $420-430 FOB domestic prices would maintain," a Kolkata based trader said.
"Any export offer below $400/mt FOB, Vishakhapatnam port could force domestic producers to lower prices by $10-15/mt to push volumes into the domestic market," he added.