Indian pig iron prices stable amid weak market sentiment

Indian domestic pig iron prices have remained stable during the past week at INR 20,000/mt ($373) ex-works, while market sentiments are still weak amid the sharp fall seen in foundries' bookings, traders said on Friday, February 8.
 
"The local pig iron market has not shown any distinct developments in trend over the past few days in the absence of any material change in the over-supply situation," an Orissa-based trader stated.
 
"Foundries have postponed booking new volumes with producers, while no reports are heard in the market of any export transactions being concluded, indicating that surplus pig iron continues to keep prices weak," the trader said.
 
According to market sources, pig iron producers located around Durgapur in eastern India and Raigarh in central India are saddled with large inventories as local foundries have not booked any volumes over the past days. Pig iron demand from foundries in northern India around Punjab province has remained modest as these foundries have been operating at lower capacities owing to power shortages, the sources said.
 
Major domestic pig iron producer Neelachal Ispat Nigam Limited (NINL) is reportedly considering a price cut for February deliveries, but no final decision has been taken during the past week, traders said.