After three weeks of stability, the local Indian pig iron market has come under renewed pressure with prices slumping by 500/mt ($8/mt) during the past week to around INR 17,200/mt ($263/mt) ex-works as large producers were seen to commence price adjustments, traders said on Wednesday, November 4.
According to a Kolkata-based trader, Neelachal Ispat Nigam Limited (NINL) has lowered its base prices to the range of INR 500-600/mt ($8-9/mt) depending on booking volumes, and market participants have also responded by lowering dealer prices in order to keep stocks moving.
The trader said that other pig iron producers like Rashtriya Ispat Nigam Limited (RINL) are also expected to follow soon later in the month after the festival season next week.
Sources said that market sentiment has also been impacted by the failure of two export tenders floated by trading firm MMTC Limited and Rashtriya Ispat Nigam Limited (RINL) for 30,000 mt each to attract any buyers even after the deadlines for the tenders were extended three times since early last month.
However, the sources added that, despite the price adjustments, volumes in the market have remained low, largely owing to the festival period ahead next week and this being the time for closing of accounts for several dealers particularly in northern Indian markets.
$1 = INR 65.52