Local Indian pig iron prices have remained stable for the third consecutive week at INR 22,800/mt ($339/mt) ex-works as buyers have stayed away in anticipation of a price cut by large producers, while reduced buoyancy in the export markets is expected to put pressure on prices, traders said on Wednesday, February 8.
"There has not been significant market activity for the past few weeks. While buying sentiment is still low, buyers are delaying transactions expecting large producers to adjust prices for current month deliveries," a Kolkata-based trader said.
"It is reported in the market that Rashtriya Ispat Nigam Limited has cancelled an export tender for 20,000 mt of pig iron. Although no reason has been cited officially, the market feels that buoyancy in the export market is tapering off in the short term and this will put prices under fresh pressure," the trader added.
Market sources said that, while billet prices have also been stagnating for the past three weeks, pig iron off-take by foundries has also virtually dried up and most foundries are making do with their existing stocks. Under such conditions, the outlook for local pig iron prices will remain bearish, the sources added.
$1 = INR 67.34