Local Indian pig iron prices have remained unchanged for the second consecutive week at INR 21,200/mt ($329/mt) ex-works amid inactive market conditions and with price cuts by producers failing to impact market prices, traders said on Wednesday, June 7.
Market sources said that Neelachal Ispat Nigam Limited (NINL) has reduced its base prices for the current month by INR 500/mt and other large producers expected to follow suit over the current week.
However, the base price revision did not impact the market price as traders are unwilling to pass on the reduction to buyers as most traders are carrying higher-cost inventories and are seeking to delay the passing on of the lower price, the sources added.
"The fall in exports and low demand will put fresh pressures on local foundry and steel grade pig iron and it is only a matter of time before this will impact dealers' prices," a Kolkata-based trader said.
"It is unlikely that dealers will be able to maintain their current higher price levels in the face of the lower base prices of producers, low demand and high inventories across the market," the trader added.
Sources said that trading firm MMTC Limited on behalf of NINL has refloated a pig iron export tender for 30,000 mt during the past week, which had been cancelled previously as it had failed to attract an acceptable offer.
$1 = INR 64.46