Local Indian pig iron prices continue to lose ground for second week in a row

Wednesday, 23 January 2019 14:56:10 (GMT+3)   |   Kolkata

Local Indian pig iron prices have continued to lose ground for the second consecutive week, moving down by INR 300/mt week on week to INR 27,100/mt ($380/mt) ex-works, with producers lowering their base prices, and also due to the poor response to export tenders and the fall in volume bookings by end-users, traders said on Wednesday, January 23.

Market sources said that producers like Neelachal Ispat Nigam Limited (NINL), which had been offering lower negotiated prices in earlier weeks, have officially lowered their base prices by INR 500/mt, the second base price adjustment in the current month, indicating a negative outlook.

“Both dealers and users are observed to be reducing fresh bookings as the market expects producers to continue to lower their base prices even for February deliveries, considering that too much material is flowing into the domestic market,” a Kolkata-based trader said.

“Export shipments are also falling in the absence of any overseas buying interest. This is vindicated by the fact that trading firm MMTC Limited was forced to extend the deadline for submission of export bids for a tender floated earlier in the month following a poor response to the number of bids submitted,” the trader added.

Sources said that produces like Steel Authority of India Limited (SAIL) are also expected to reduce pig iron volume sales through e-auctions as few dealers or users are willing to get into competitive bidding to secure supplies amid bearish market conditions.

$1 = INR 71.24

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