Indian domestic pig iron prices have continued their downward movement in the past week, declining by INR 400/mt ($6/mt) to INR 18,600/mt ($296/mt) ex-works, amid lackluster market conditions and reduced demand, traders said on Monday, August 19.
According to Kolkata-based traders, sentiments in the eastern and central Indian pig iron consuming markets have been extremely bearish with foundries continuing to reduce their bookings, while traders are carrying large inventories and are aggressively offering discounts to keep stocks moving.
Market sources said that there are no reports in the market of any new pending export tenders from large producers for September shipments, which indicates that there will be no easing of pressures from excess domestic supplies on prices.
The sources state that the domestic pig iron market will continue to remain subdued in the foreseeable future considering extremely poor sentiments in overall manufacturing and in the short term traders may be forced to increase discounts by another INR 400/mt unless producers are able to clinch export orders and ease supply-side pressures in the domestic market.