Indian domestic pig iron prices have continued to remain under pressure during the past week, moving down by INR 500/mt ($8/mt) to levels of around INR 17,500/mt ($285/mt) ex-works amid a lack of any buying interest during the festival season and weak sentiments in export markets, traders said on Monday, October 14.
According to a Kolkata-based traders, few user industries in the foundry sector have been willing to replenish stocks during the festival season and several traders in eastern India have not been active in the market.
Market sources said that sentiments have been also depressed due to the lack of any reports on successful pig iron export deals by leading domestic suppliers like Rashtriya Ispat Nigam Limited (RINL) and Neelachal Ispat Nigam Limited (NINL).
The sources said that one bidder for a tender for 30,000 mt opened last month by RINL had been disqualified, while at the same time there has been no confirmation from the producer regarding the range of price bids received. Similarly, in case of NINL the market has no information about price bids for the 60,000 mt on offer for exports, the sources said.
The absence of information on the export front has contributed to the bearishness of market sentiments since traders were expecting an easing of supply pressures from increased export orders, the sources said.