Local Indian pig iron prices have remained unchanged during the past week at around INR 18,000/mt ($294/mt) ex-works against the background of a lack of demand and the extended holiday weekend ahead, traders said on Wednesday, October 22.
According to a Kolkata-based trader, buyers have retreated from the market to avoid building up inventories since most medium-sized privately-held businesses will be closing their accounts tomorrow.
At the same time, most long product producers are reported to have built up large stocks and hence are not inclined to conclude deals and so there is little interest in steel grade pig iron, he said.
Rashtriya Ispat Nigam Limited (RINL), one of the main Indian pig iron producers, is in the process of getting its operations back on track after being forced to shut down due to cyclone Hudhud. However, the absence of supplies from this producer has failed to improve sentiments in the market. Sources have said that the market is in such a state of oversupply that the shortfall of pig iron supplies in the short term from RINL will not impact demand-supply dynamics.
$1 = INR 61.20