Pressure has continued unabated on local Indian pig iron prices for the third consecutive week, with prices losing INR 300/mt ($5/mt) to around INR 15,800/mt ($254/mt) ex-works amid the failure of export tenders and fresh excess supplies, traders said on Wednesday, March 25.
According to a Kolkata-based trader, market sentiments have turned negative due to the continuous failure of any of the large producers in concluding export transactions.
The trader said that, according to market reports, it has been over two months since any export tenders were successfully concluded, with major producers like Neelachal Ispat Nigam Limited (NINL) and Rashtriya Ispat Nigam Limited (RINL) both having cancelled at least four export tenders as offers were not acceptable.
There has been a rise in pig iron production globally and Indian pig iron production in February this year was up seven percent. However, given the high price of iron ore, local pig iron producers have been at a disadvantage in the exports markets, as reflected in the lack of suitable offers to export tenders, he added.
Sources said that the market expects at least 80,000-100,000 metric tons of export surplus pig iron to be diverted into the domestic market, putting renewed pressure on the already soft local pig iron prices.