Local Indian pig iron prices have edged down by INR 100/mt ($1.5/mt) over the past week to INR 17,700/mt ($260/mt) ex-works in response to low market activity and the absence of any short-term direction in the market, traders said on Wednesday, June 29.
“There are no indications as yet on July base prices from any of the large producers. Accordingly, market participants are seen to be retreating from the market,” a Kolkata-based trader said.
“On the demand side, the off-take of steel grade pig iron has been impacted by the anticipated fall in demand for construction grade long products during the forthcoming monsoon season,” the trader added.
Market sources said that, with no export tenders successful during the past several months and given low domestic demand, there is a huge inventory build-up at both producers and dealers with at least two traders claiming aggregate inventories at producers during the current month will exceed 150,000 mt.