Local Indian
pig iron prices have remained unchanged during the past week at around INR 18,000/mt ($292/mt) ex-works against a backdrop of low demand and dealers' unwillingness to build up inventories during the festive season, traders said on Wednesday, October 1.
According to a Kolkata-based trader, large
pig iron producers in eastern and southern
India have been seen pushing volumes to the northern region where modest demand for foundry grade
pig iron is reported, but trade conditions have remained largely inactive in other markets.
At the same time, traders have continued to offer discounts of around INR 400/mt ($6/mt) to push foundry grade
pig iron into northern markets and avoid a build-up of stocks on the dealers' side, he said.
In view of the spate of holidays ahead in
India, most dealers are not making fresh bookings, while foundries in the eastern and southern regions are planning to shut down or lower capacity utilization owing to the upcoming holidays, he added.
Market sources have said that there are no reports of any export tenders floated for October, while sentiments over exports are nervous in view of uncertainties in the Chinese market and the softening of prices in the CIS.
The sources said that Indian
pig iron producers were successful in securing good export deals averaging above $340/mt during the past two months, but the short-term outlook has become negative since
pig iron prices ex-China and ex-CIS are on a downward curve, the sources said.
The market is awaiting export plans from Indian producers later this month which could impact short-term local price movements, the sources added.
$1 = INR 61,69