Local Indian pig iron prices have continued their downward movement for the second consecutive week, declining by INR 500/mt ($7/mt) week on week to INR 20,300/mt ($297/mt) ex-works in anticipation of price cuts by producers for December deliveries and amid the ongoing cash liquidity crunch in the market, traders said on Wednesday, November 30.
"The mood in the market has turned bearish. Most market participants are strapped for cash to meet incidental expenses in taking fresh deliveries from producers and demand from foundries has also tapered off as they have failed to find liquidity to make raw material purchases. It is a vicious cycle that has begun in the market," a Kolkata-based trader said.
"Major producers are also expected to lower their base prices for December in view of falling demand and off-take, also prompting dealers to postpone fresh bookings," the trader added.
Even the successful completion of export transactions last week has failed to have any impact on the bearish sentiment in the market, sources said.
Trading house MMTC Limited successfully concluded an export order for 15,000 metric tons in the past week, but this has not impacted local sentiments because the deal was concluded at $285/mt, lower than the current prevailing domestic price, sources stated.
$1 = INR 68.40