Local Indian
pig iron prices have remained stable during the past week at INR 16,500/mt ($249/mt) ex-works despite domestic producers making cuts to their base prices, traders said on Wednesday, November 25.
According to a Kolkata-based trader, although producers have been adjusting their prices to keep inventories under control, dealers have yet to pass on the lower base price to buyers.
"Dealers are caught between the imperatives of maintaining their own margins and pushing volumes into the market in a falling demand scenario," the trader said.
"However, I feel that adjustment of dealer prices will become inevitable later in the week as there is just no buying interest in the market with the foundry sector in a strong downturn," the trader added.
Market sources said that Neelachal Ispat Nigam Limited (NINL) has reduced its base
pig iron price by INR 700/mt ($10.55/mt) during the past week, cutting its prices for the second time this month. Earlier in the month, NINL had adjusted its prices downward by INR 500/mt ($7.50/mt).
The sources said that Rashtriya Ispat Nigam Limited (RINL), though maintaining its base price unchanged, has commenced offering volume discounts although the size of the discount offered has not been confirmed by market sources.
$1 = INR 66.35