Local Indian pig iron prices have moved down by INR 200/mt ($3/mt) during the past week to INR 15,600/mt ($234/mt) ex-works as more large producers have slashed prices amid high inventories, traders said on Wednesday, August 10.
Market sources said that Rashtriya Ispat Nigam Limited has cut its prices by INR 2,000/mt ($30/mt) during the past week, double the adjustment announced by Neelachal Ispat Nigam Limited (NINL) earlier this month when it had pruned its pig iron prices by INR 1,000/mt ($15/mt).
“The price cuts announced by producers seemed inevitable to the market considering that there is a lot of inventory at both traders and producers,” a Kolkata-based trader said.
“However, it is not clear whether the price adjustment will lead to any revival in levels of market activity, considering the very high level of oversupply,” the trader said.
Market sources said that dealers’ price adjustments are lower than producers’ base price reductions since dealers’ pig iron prices had already decreased in the previous week.