Local Indian pig iron prices have remained stable at around INR 20,500/mt ($369/mt) ex-works in the past week, with no demand revival and sustained pressure from oversupply, traders said on Monday, May 27.
"The local pig iron market has showed no material change in either depressed demand from foundries or in terms of an easing of the excess stock flowing into the market," a Kolkata-based trader said.
"Traders like us, catering largely to medium-scale foundries, are not making any significant bookings because margins are so low that it does not even cover our inventory carrying costs. Pig iron trading has become a losing business for us without any demand," the trader said.
Sources said that market expectations that large pig iron producers carrying high levels of inventories would cut prices have not materialized and neither has any report been received of export transactions by these producers, resulting in depressed sentiments and marginal volume bookings by traders.