Prices in the local Indian pig iron market have remained stable for the second consecutive week at INR 20,300/mt ($301/mt) ex-works, amid low trading activity and scarcity of buyers, traders said on Wednesday, December 14.
“Uncertainty over the short-term trend and the lack of interest from buyers particularly in the foundry sector have led to a lull in the market. Dealers are already carrying sufficient inventories and so they are unwilling to conclude fresh deals,” a Kolkata-based trader said.
“At the same time, none of the large producers have given any indication of a base price revision for the current month, prompting market participants to adopt a wait-and-see stance,” the trader added.
Sources said that the cautious mood is also a result of several reports that no new export tenders are expected to be floated during the current month. Although these reports were not confirmed by any of the exporting trading firms, the sources maintained that tepid export demand could result in more pig iron volumes flowing into the domestic market and so a weakening of prices could not be ruled out.
According to another trader, the stagnation in pig iron prices was also due to similar stagnant price levels in the billet markets reflecting weak demand for construction grade long products.
$1 = INR 67.52