Local Indian
pig iron prices have fallen slightly by about INR 200/mt ($3/mt) to the range of around INR 17,900-18,000/mt ($291-293/mt) ex-works in response to falling scrap prices and the further fall in demand for steel grade
pig iron, traders said on Wednesday, October 29.
According to a Kolkata-based trader, most dealers are carrying very high stocks of long products and there is heavy discounting and this has impacted demand for steel grade
pig iron with buyers completely absent from the market.
The fall in
pig iron prices has been sharper in central Indian markets around the Raigarh region where traders are offering a further discount of INR 200/mt ($3/mt) to keep stocks moving but still failed to find buyers since mills in the region had reduced capacity utilization in face of rising stocks of long products, he said.
Sources said that billet prices have been adjusted downwards by as much as INR 1,500/mt ($24/mt) since beginning of the month and this too has put additional pressures on
pig iron prices and demand.
Sources said that market sentiments have been also affected by the lack of interest in Indian
pig iron in overseas markets.
An export tender floated by government trading house MMTC Limited on behalf of Neelachal Ispat Nigam Limited (NINL) for 30,000 mt which closed on October 9 had failed to evoke any interest and the last date for submission of offers has been extended until October 31, the sources added.