Local Indian
pig iron prices have remained unchanged during the past week at INR 20,700/mt ($321/mt) ex-works amid inactive market conditions and buyers staying away due to multiple uncertainties, traders said on Wednesday, June 21.
"Most dealers are keen to reduce stocks as close to nil as possible before July 1, when the countrywide uniform indirect tax kicks in. Holding stocks liable for multiple tax incidences will lead to compliance issues," a Kolkata-based trader said.
"Producers are also busy working out the impact of the new indirect tax on prices and are concerned as most are reported to be carrying large inventories," the trader added.
At least two other traders said that buyers are staying away as the market expects a reduction in base prices by producers for July deliveries in view of high inventories, the slowdown in off-take from the foundry sector and the absence of any uptick in export demand.
Market sources said that government trading firm MMTC has cancelled an export tender for 30,000 mt during the past week as most offers submitted fell below the $300/mt FOB mark, and this impacted market sentiments.
$1 = INR 64.53