Local Indian pig iron prices have weakened for the second consecutive week, edging down by INR 300/mt ($5/mt) over the past week to about INR 16,100/mt ($257/mt) ex-works amid steady downward movement in prices of scrap and billet, traders said on Wednesday, March 18.
A Kolkata-based trader stated that the slump in the secondary steel sector and the softening of billet and rebar prices have impacted on the local pig iron market. Fear of oversupply in line with the dismal performance in the exports markets has also worsened sentiment.
Sources said that an export tender for 40,000 mt of pig iron floated by major domestic pig iron producer Neelachal Ispat Nigam Limited (NINL) earlier in the week failed to evoke even a single response.
In fact, with no successful export transaction reported in the market since the end of February, traders have been expecting strong pressure on prices due to oversupply, the sources added.
Market sources also stated that falling product prices and the slump in scrap prices in the secondary steel segment have made pig iron dealers cautious and unwilling to conclude fresh bookings.
Citing examples, they said that local billet prices have declined by INR 600/mt ($10/mt) during the past week to about INR 27,200/mt ($434/mt) ex-works, resulting in a lack of interest in steel grade pig iron and a falling trend in transaction volumes.
$1 = INR 62.72