Indian domestic pig iron prices have remained stable during the past week at around INR 18,400/mt ($294/mt) amid continued sluggish demand and low volume transactions, traders said on Monday, September 23.
According to two Kolkata-based traders, large pig iron producer Neelachal Ispat Nigam Limited (NINL) is pushing more volumes into the domestic market since no export tenders have been formalized for the current month, leading to a worsening of supply side pressure.
With the festival season next month, most traders in the eastern and southern Indian markets are offering discounts of around INR 300-400/mt ($5-6/mt) to liquidate inventories and ensure cash flow, the traders said.
Producers have been maintaining their base prices unchanged owing to high energy costs and traders are being forced to push volumes by cutting their own margins, the traders added.
Market sources said that there are no reports of any export shipments concluded during the current month, and this has depressed trading sentiments, already hit by very low transaction volumes.