Indian domestic pig iron prices have remained stable since last week at INR 23,500/mt ($442/mt) ex-works, but with negative sentiments from oversupply and the unattractive export market, Indian traders said on Thursday, October 18.
Neelachal Ispat Nigam Limited (NINL) has completely quit the export market. Another major pig iron exporter, Rashtriya Ispat Nigam Limited (RINL), has for the second time deferred the closing date of its export tender for 30,000 mt from October 15 to October 31, according to traders in Kolkata.
"Demand from foundries has been soft. Pressures on domestic prices will increase once producers like NINL and RINL start focusing on the domestic market, resulting in oversupply amid weak demand," a trader said.
"Indian pig iron export offers have fallen to levels of $370/mt FOB Paradip port in line with the appreciation of the rupee against the dollar and the resultant drop in export realizations has forced producers to pull out of the international markets," the trader added.
Major producers have cut prices by INR 1,500 ($30/mt) over the past one month, and together with the fall in dollar earnings, the net fall in pig iron prices has been about INR 2,100/mt ($40/mt) over the past month, traders said.
"Domestic prices are expected to stagnate with producers keeping prices unchanged and demand at low levels since the festive season has started and will stretch until mid-November. Domestic market dynamics may be expected to change only after the festivals end," said a trader in Cuttack in eastern India.