Local Indian pig iron prices have remained stable at around INR 15,300/mt ($241/mt) ex-works during the past week amid poor buying conditions, traders said on Wednesday, July 1.
According to a Kolkata-based trader, sentiments and volumes have continued to remain depressed and ongoing discounts of around INR 200/mt ($3/mt) have failed to have any impact on the market.
Steel Authority of India Limited (SAIL) has announced an open sale of 65,000 mt of steel grade pig iron for July deliveries and the significant volumes on offer have worsened the fears of oversupply in the market, sources said.
Buyers are also cautious in view of the demand situation and are waiting for major producers to give price indications for the current month although most market participants have low expectations of producers adjusting their base prices, the sources added.
Rashtriya Ispat Nigam Limited (RINL) which had floated an export tender for 30,000 mt has received a highest offer of $247/mt which was below the expected price of $260/mt and this has impacted sentiments in the markets, the sources said.
A section of the market said that depressed prices of billets and the slowdown in demand for long products from the construction sector owing to the monsoon season have also worsened sentiments for steel grade pig iron.
In markets in northern Indian, billet prices have touched a four-year low at around INR 28,000/mt ($441/mt).
At the same time, some provinces like Maharashtra have increased power tariffs and others like Chhattisgarh are considering a similar move, which increases concerns among foundries which are not inclined to conclude fresh transactions in the pig iron market, the sources added.
$1 = INR 63.56