Local Indian
pig iron prices have edged down marginally by around INR 100/mt ($1.6/mt) during the past week to approximately INR 18,000/mt ($293/mt) ex-works amid sluggish demand for semi-finished products and adjustments of base price by more producers, traders said on Wednesday, October 15.
According to a Kolkata-based trader, steel grade
pig iron prices have softened across the country in reaction to the fall in demand for and in prices of long products and rising imports of Chinese long products particularly in local markets in coastal regions.
Market sources said that, contrary to the announcement early this month that it would be keeping prices stable during the current month, Neelachal Ispat Nigam Limited (NINL) on October 14 said that it would lower its price by INR 300/mt ($4/mt), reflecting the worsening demand situation in the market.
The sources said that buyers from the foundry sector have not concluded any significant transaction during the week either as market fears of a weakening of the manufacturing sector have been vindicated as government data released this month indicated that the index for industrial production (IIP) has remained stagnant at 0.4 percent for the past two consecutive months belying hopes of an overall demand revival.