Local Indian pig iron prices have remained stable during the past week at INR 17,800/mt ($265/mt), ex-works amid the continuing negative outlook and pessimism over export shipments, traders said on Wednesday, June 15.
“The slide in price might have eased off during the past week but market activity has been at a very low ebb. With market expectations of a resumption in the downward market movement, buyers are virtually absent,” a Kolkata-based trader said.
“Reports indicate that in some regions like the central Indian market dealers have started to offer marginal discounts of INR 100/mt ($1.5/mt) to avoid inflated inventories,” the trader said.
“The biggest concern in the market is that large producers have built up high inventories after export tenders failed to evoke any interest, while increased supplies to the local markets have been putting pressures on trade,” he added.
Market sources said that trading firm MMTC Limited’s export tender for 15,000 mt on behalf of Neelachal Ispat Nigam Limited failed to evoke any response before the closing date of June 8 and so the tender has been cancelled. This is the second time in less than a month that an export tender had to be cancelled following a lack of response from overseas buyers, the sources added.