Indian
pig iron prices remained stable during this week at INR 24,000/mt ($433/mt) ex-works, due to limited buying interest and an anticipated price correction in line with steel prices, traders said on Thursday, September 13.
"Domestic
pig iron prices will receive direction when an export tender for 30,000 mt floated by Rashtriya Ispat Nigam Limited (RINL) will be opened on September 17," a Kolkata trader said.
"Chinese
pig iron producers have reportedly reduced prices, while the price of Russian origin
pig iron is at par with the Indian domestic price. If offers for the RINL tender are at levels of around $433/mt, this will put pressure on domestic producers to cut prices again," the trader added.
Export sales are crucial in maintaining the supply-demand balance in the domestic market, which is moving into oversupply, and an export surplus moving into domestic sales would put further pressure on prices, according to an Orissa-based
pig iron producer.
According to government data, Indian
pig iron production during August this year is estimated at 528,000 mt, up 2.33 percent month on month. Total
pig iron production by major producers available for commercial sales during the April-August period of this year increased by seven percent compared to the corresponding period of the previous year to 2.6 million mt, while the consumption growth rate is estimated at 7.4 percent when the same periods are compared.