Indian pig iron prices have slumped by $7-8/mt this week amid lower transaction activity and weak demand for semi-finished steel products, a Punjab-based trader said on Wednesday, July 18.
Neelachal Ispat Nigam Limited (NINL), the country's largest producer of pig iron, has reduced pig iron prices by Rupees 400/mt ($7.22/mt) to Rupees 25,000/mt ($451.7/mt), the trader said.
The price of foundry grade pig iron has also been cut by the same amount and is now at Rupees 27,000/mt ($487.9/mt), he added.
"Until two months ago, our sales averaged at 300 mt of foundry grade pig iron every month. But this month, there is no demand for pig iron and our sales have been nil till now," a Delhi-based trader said.
Pig iron demand coming from electric arc furnaces for the production of construction steels has regressed since construction activities, particularly large infrastructure projects, have slowed down due to monsoon rains, both traders said.
Indian production of pig iron in FY 2011-12 is estimated at 5.5 million mt.