Local Indian
pig iron prices have continued to fall unabated for the third consecutive week, falling by INR 200/mt ($3/mt) over the past week to around INR 16,900/mt ($268/mt) ex-works as buyers have continued to stay away from the market and as the oversupply situation has worsened since export opportunities have been drying up, traders said on Wednesday, December 31.
According to a Kolkata-based trader, the local
pig iron market has been showing a bearish trend with persistent downward price movement, forcing buyers to stay away in expectation of new bottom levels every week.
Most buyers particularly for steel grade
pig iron are expecting January prices to dip further in tandem with prices of construction grade long steel products and this has resulted in negligible transaction volumes in most central and western Indian markets, he said.
Market sources said that the downward pressure on prices has increased as sentiment has deteriorated since demand in
pig iron export markets seems to be drying up.
Fears of oversupply have increased after major producer Rashtriya Ispat Nigam Limited (RINL) extended the final date for its 30,000 metric ton export tender until January 8, 2015 after the previous deadline failed to evoke any response.
Similarly, government-owned trading house MMTC Limited has extended the final date util January 5, 2015 for an export tender for a lot of 30,000 metric tons of
pig iron, as the previous offer did not attract any acceptable bids, the sources added.
$1 = INR 63.08