Following the declines recorded in the previous three weeks, local Indian
pig iron prices have remained stable at INR 21,200/mt ($329/mt) ex-works during the past week as the market awaits price directions from large producers, traders said on Wednesday, May 31.
"After the decreases in previous weeks, the local
pig iron market has been taking a pause in the past week. Most market participants have adopted a wait-and-see stance ahead of producers' announcements of their June delivery prices, and also as they are waiting for the strong volatility of billet prices to settle down," a Kolkata-based trader said.
"Even though
pig iron prices have remained stable during the past week, sentiment has remained negative. With end-users staying away from the market, only a sharp price reduction by producers can revive market activity, which is currently low," the trader added.
Market sources said that there is a lot of uncertainty over June prices of producers but, having already reduced their
pig iron prices a week ago, they are unlikely to go in for another round of price adjustments so soon.
Sentiment has also been impacted by the lack of any information on fresh export tenders from any of the large producers, with the market apprehending that the steady rise in inventories will continue next month, the sources added.
$1 = INR 64.54