Local Indian pig iron prices have continued to edge down for the second consecutive week, softening by INR 200/mt in the past week to INR 22,000/mt ($343/mt) ex-works, amid low buying interest and pessimism over the export outlook, traders said on Wednesday, May 17.
"Buyers in the foundry sector have been absent from the market and restocking has been negligible, prompting dealers not to conclude fresh bookings," a Kolkata-based trader said.
"Even a downward base price revision earlier in the month failed to boost sentiment or buying," the trader added.
At least two other traders said that the market is very pessimistic over the prospects for pig iron exports from the country, pointing out that no export tender has been floated by any Indian producers so far in the current month.
The traders said that globally the pig iron market is showing a bearish trend and, with the Indian rupee continuing to appreciate and currently at INR 64 to the US dollar, export margins are not sufficient to push volumes overseas.
As a result, the market is expecting producers to push more volumes into the local market and this is putting fresh pressure on local prices, the traders added.
$1 = INR 64.10