Local Indian pig iron prices have continued their declining trend during the past week, falling by INR 100/mt ($1.6/mt) to around INR 18,100/mt ($298/mt) ex-works largely due to poor demand for steel grade pig iron, traders said on Thursday, July 31.
According to a Kolkata-based trader, prices of long steel products are undergoing a correction as prices had moved up too fast earlier and demand for construction grade steel has been falling due to monsoon rains.
Hence, transactions volumes for steel grade pig iron are very low even while demand for foundry grade pig iron has been maintained, he said.
Market sources said that reports of renewed interest in Indian pig iron from overseas buyers has also failed to improve sentiments since the volumes on offer will only have a marginal impact on supply side pressures on prices.
It has been learned from market sources that MMTC Limited, a government-owned trading house, has received two offers in response to the export tender for 60,000 mt which closed on July 30. Sources said that, while the technical bid has been finalized, price bids have yet to be announced by the trading company.
However, the sources said that, according to market expectations, offer prices could be lower than $390/mt FOB, the level at which Rashtriya Ispat Nigam Limited (RINL) had concluded the last export transaction last month.
$1 = INR 60.82