The Indian domestic pig iron market has continued to be characterized by some weakness, with prices stagnant at INR 20,000/mt ($375/mt) ex-works and with offers from producers in a few regions around INR 200/mt ($4/mt) lower, traders said on Friday, February 1.
"Some producers in Durgapur in eastern India have been quoting lower base prices. This is an indication that weakness persists in the market and there are sharp variations in demand from foundries in various geographical regions," a Kolkata-based trader said.
"Foundries in northern India have been operating at comparatively better capacities than those in eastern India because of marginally better demand for moulds in the north," the trader said.
However, according to market sources, a positive for the pig iron market was the successful export transaction of 30,000 mt concluded this week by Rashtriya Ispat Nigam Limited (RINL) at around $396/mt FOB. Neelachal Ispat Nigam Limited (NINL) also concluded an export transaction for 30,000 mt, but the price could not be confirmed by market sources.
However, the markets were still unsure whether these two shipments indicated a revival of pig iron exports from the country, while, in addition, the combined shipment volume was not large enough to absorb the large surplus in the domestic market, the sources said.
The market expects leading domestic producers like RINL and NINL to announce revised prices in the coming week, which would give some direction to short-term price movements, but foundries are not concluding bookings until they are sure that prices have bottomed out, market sources said.