Local Indian pig iron prices have continued to remain under pressure from oversupply and low demand from the foundry sector, declining by INR 400-500/mt ($8/mt) over the past week to around INR 17,000/mt ($273/mt) ex-works, while discounts have increased, according to traders.
"The gloom in the local pig iron market has continued to worsen. Most traders have had no option but to widen discounts to keep pushing volumes into the market to maintain their cash flow. In several regions, market intermediaries have been concluding transactions at negative margins," a Kolkata-based trader said.
"The domestic market has been heavily in the oversupply zone. Reports received indicate that the global markets too are increasingly characterized by excess production and this has been reflected by the fact that no export tenders are reported in the market for December-January shipments," the trader added.