Local Indian
pig iron prices have edged down to lower levels during the past week, moving down an average INR 200/mt ($3/mt) to about INR 18,000/mt ($295/mt) ex-works, as large producers have started to adjust prices to tackle the depressed market conditions, traders said on Wednesday, September 10.
Market sources said that Neelachal Ispat Nigam Limited (NINL) has slashed prices by INR 200-400/mt ($3-6/mt) for September deliveries, for various steel and foundry grade
pig iron to cope with the sluggish movement of stocks and falling demand from billet producers and from the foundry industry.
Other large producers like Rashtirya Ispat Nigam Limited (RINL) too are expected to announce lower prices later this week, the sources said.
Both NINL and RINL have floated fresh export tenders seeking offers during the current month, but the revival of interest in Indian
pig iron from overseas buyers has failed to have any impact on local prices, with domestic demand weakening steadily over the past months, a Kolkata-based trader said.
NINL has floated an export offers for 30,000 mt with an optional quantity of an additional 10,000 mt, while RINL's tender offer is for 30,000 mt.
The market is not optimistic that good export offers will boost local market sentiment, since last month a successful export offer at $393/mt from MMTC failed to provide any support for local prices, the Kolkata-based trader said.