Local Indian pig iron prices have remained stable during the past week at around INR 16,600/mt ($267/mt) ex-works, as buyers eased their restocking activities, while a few producers withdrew volume discounts, traders said on Wednesday, March 4.
According to a Kolkata-based trader, active restocking for foundry and steel grade pig iron seen last month has tapered off during the week, as buyers have been cautious about building up large inventory given the overall tepid demand for casting and forging products as well as billets. Hence, the upward momentum seen last month has proved to be short-lived as the fundamentals of oversupply and depressed demand once again came to the forefront, the trader said.
However, he said that the downward pressure on prices has been limited by the fact that a few large producers like Neelachal Ispat Nigam Limited (NINL) have kept their base prices unchanged for March while withdrawing volume discounts.
Sources said that most producers are cautious about increasing base prices in view of sluggish demand as they are forced to withdraw discounts to offset the increase in freight rates and the tax rate on coal announced by the government in the federal budget late last week.
$1 = INR 62.26