Local Indian pig iron prices have remained unchanged during the past week at around INR 18,000/mt ($290/mt) ex-works against a background of negligible transaction volumes and a lack of interest from buyers, traders said on Wednesday, November 19.
According to a Kolkata-based trader, falling prices of billets and of long products have impacted the market with steel grade pig iron trading volumes falling sharply.
Moreover, with major domestic pig iron producers maintaining their base prices unchanged through November, there has been more market interest in scrap since imported scrap prices have dropped sharply, he said.
At present, imported scrap prices are at least INR 1,500/mt ($24/mt) lower than domestic scrap prices, further accentuating the lack of interest in pig iron, he added.
Market sources said that most secondary steel producers across the country have reduced production by 30-40 percent owing to the sharp decline in margins and the resulting sharp drop in fresh bookings of pig iron.
Market sentiments also took a hit after government trading house MMTC Limited acting on behalf of domestic pig iron producer Neelachal Ispat Nigam Limited (NINL) attracted just one bid in its export tender for 30,000 mt and decided to cancel the tender following the poor response, the sources added.
$1= INR 61.99