Indian pig iron prices have declined by INR 500-700/mt ($9-13/mt) to INR 23,500/mt ($452/mt) ex-works, on oversupply and October price cuts by major producers, several traders said on Thursday, October 4.
"Rashtriya Ispat Nigam Limited (RINL) has cut pig iron prices by INR 500/mt ($9/mt) effective for the current month. Another major producer, Neelachal Ispat Nigam Limited (NINL) is expected to lower prices next week," a trader based in the eastern Indian province of Orissa said.
"Pig iron prices have reacted to large oversupply in the market. Exporters like RINL and NINL have pulled out of the export market and surplus pig iron has moved into the domestic market, while demand remains tepid," the trader added.
Pig iron prices will continue to remain under pressure with downside risks of another INR 500/mt ($9/mt) since all major producers are carrying large inventories, according to a Kolkata-based trader.
No export tenders from producers for November shipments have been reported, indicating continued low offers from overseas buyers and producers' withdrawal from international markets, the trader said.
RINL has a 30,000 mt September export tender pending and scheduled to close on October 10 for shipment in current month. According to traders, offers until now have been below the $400/mt mark and hence execution of the shipment is uncertain.
According to market reports, NINL, one of the largest Indian pig iron producer-exporters, received offers at around $375/mt FOB Paradip port in Orissa, substantially lower than the expected $440/mt FOB, forcing the company to cancel the export tender, the trader added.