This week, Indian domestic
pig iron prices have remained stable at a lower level of INR 20,000/mt ($366/mt) ex-works, amid little change in oversupply in the market and the ongoing low volume of bookings by foundries, traders said on Thursday, January 17.
"There are no takers for the export surplus diverted into the domestic market. On the demand side, foundries are making minimal bookings, anticipating continued weakness in prices until the excess
pig iron is absorbed," a Kolkata-based trader said.
"It has become difficult to predict the bottoming of
pig iron prices with 125,000-150,000 mt export material still available for domestic users," the trader added.
According to market sources, major domestic producer Rashtriya Ispat Nigam Limited (RINL) floated an export tender for 30,000 mt of
pig iron earlier this month, but no information was available of offers received.
With
pig iron prices decreasing by INR 1,500-1,700/mt ($27-31/mt) over the past one month, a reversal of the trend is only possible with leading producers concluding favorable export offers, since demand from foundries will continue to be sluggish amid tepid industrial growth, traders in the eastern Indian province of Orissa said.