Local Indian pig iron prices have remained stable during the past week at INR 17,800/mt ($264/mt) ex-works, failing to react to price cuts by producers, reflecting the lack of any buying interest in the market, traders said on Wednesday, June 22.
Market sources said that Neelchal Ispat Nigam Limited (NINL) issued its prices for July deliveries on Tuesday June 21, reducing its base price by INR 900/mt ($13/mt), with the sources adding that other producers like Rashtirya Ispat Nigam Limited (RINL) are expected to follow suit next week.
“The price reduction announced by NINL did not have any impact on local pig iron prices. Either there will be an impact with a time lag, or considering extremely low volumes in the market dealers are unwilling to pass on the benefits of lower base price to buyers,” a Kolkata-based trader said.
“At the same time, I am not sure how long dealers will be able to keep prices unchanged considering that most are reported to be carrying large inventories,” the trader added.
Meanwhile, trading firm MMTC Limited on behalf of NINL has refloated a fresh export tender for 15,000 mt of pig iron, but market sources said that prospects for successful shipment are weak considering that no export tender has been successful in the past several months.