Local Indian
pig iron prices have indicated no significant change during the past week, remaining at around INR 18,500/mt ($302/mt) ex-works in sluggish market conditions, traders said on Thursday, March 20.
According to a Kolkata-based trader, buyers in the foundry sector have been few and have kept their transaction volumes low as most are cautious because of political uncertainties with the approach of the Indian national elections and due to very slow growth in the domestic manufacturing sector.
However, on the positive side, current price levels have at least been maintained during the past week and the poor market conditions have not dragged down prices, the trader added.
At the same time, a southern Indian trader said that, while large producers have kept their prices unchanged, a few traders in southern
India have been offering discounts in the range of INR 200-400/mt ($3-6/mt) to keep their inventories moving since buying activity is expected to decline during the coming one-month period owing to the national elections and the lack of government spending on large projects.
Market sources said that no new export tenders from large producers have been reported during the past week and that local
pig iron prices have a downside risk of around INR 400/mt ($6/mt) over the next one month, unless overseas buying interest revives, as the recent gains in price may not be sustained by the current sluggish market.