Local Indian pig iron prices have declined by INR 600/mt ($9/mt) during the past week to INR 22,200/mt ($332/mt) ex-works amid increased supplies to the domestic market by producers facing slack export shipments, traders said on Wednesday, February 15.
"Three weeks of stability has given way to a soft trend in the local pig iron market. Local producers have been pushing higher volumes into the domestic market due to a lack of export shipments," a Kolkata-based trader said.
"Local dealers have been reluctant to make fresh bookings as foundries are not placing any significant orders for steel grade pig iron and this has placed prices under renewed pressure," the trader added.
Market sources said that at least one large producer and one export trading house face bleak prospects in the export markets. The trading firm was forced to cancel and refloat an export tender for 30,000 mt as bids in response to the first tender were not found acceptable. In the case of the producer-exporter, its tender received just one bid and sources said that the tender will most likely be cancelled.
In view of the slackness of exports, producers are pushing export surplus into the domestic market putting prices under supply-side pressure, the sources added.
$1 = INR 66.92