Local Indian pig iron prices have remained unchanged during the past week at around INR 15,300/mt ($239/mt) ex-works in a low activity market and buyers have limited themselves to transactions for low volumes anticipating a price adjustment by producers, traders said on Wednesday, July 29.
According to a Kolkata-based trader, the market has lacked any short-term positive factors and all talks have revolved around expectations of discounts and price cuts, and naturally buyers have been unwilling to conclude any fresh deals under such prevailing circumstances.
The trader said that the entire semi-finished product segment has been under pressure as reflected by the steady declines in prices of ingots and billets, and this in turn has reduced buying interest in steel grade pig iron.
As for foundry grade pig iron, several foundries in southern Indian regions have had to cope with recent hikes in power tariffs and foundries have not been in any mood to increase inventories, he added.
Some market sources have stated that a large pig iron producer like Neelachal Ispat Nigam Limited (NINL) is considering a downward price adjustment of around INR 700/mt ($11/mt) for August deliveries but this could not be independently confirmed.
$1 = INR 63.94