Indian domestic pig iron prices have stagnated at lower levels of INR 19,000/mt ($317/mt) ex-works during the past week, with no change in the depressed demand situation among user industries and with the main producers keeping their prices unchanged, traders have said.
According to two Kolkata-based traders, there is a lack of confidence in the local Indian pig iron market with most traders carrying large stocks and the main producers not willing to cut their prices, resulting in extremely slow movement of volumes in the market.
Confidence in the markets has also been shaken with the lack of reports of any new export tenders or overseas transactions during the week, indicating that there will be no change in the supply side pressure on prices, the traders said.
Market sources said that traders could be forced to increase discounts to INR 200-400/mt ($3-6/mt) as the fall in demand for steel grade pig iron will gain momentum with monsoon rains becoming widespread, resulting in a slowdown in construction activity and in reduced demand for long products.