Downward pressures have eased in the local Indian pig iron market during the past week with prices remaining stable week on week at INR 16,700/mt ($249/mt) ex-works, while buyers have been postponing any new transactions in the absence of short-term market directions, traders said on Wednesday, July 13.
"With the very sharp fall of INR 1,000/mt ($15/mt) seen early in the month, the market is taking a pause possibly because it is unsure of the short-term movement of prices," a Kolkata-based trader said. "The outlook has continued to be negative with a significant fall in buying interest seen among large foundries across northern and central regions in India," the trader added.
Market sources said that adjustments of prices by large producers for July deliveries have failed to have any impact as most dealers are already saddled with high stocks and are not willing to make fresh commitments.
According to a section of market sources, a few medium-sized pig iron producers around Durgapur in eastern India have commenced offering discounts of around INR 500/mt ($7/mt), but have declined to forecast if this could become a short-term industry-wide trend among larger producers too.
$1 = INR 67.03