Local Indian pig iron prices have remained at INR 18,000/mt ($286/mt) ex-works but weakness has persisted in the market with discounts expanding during the past week, traders said on Tuesday, January 28.
According to a Kolkata-based trader, offered discounts have increased to around INR 500/mt ($8/mt), up from the level of INR 400/mt ($6/mt) prevailing in the previous week.
Market intermediaries have been forced to increase discounts to keep inventories moving in the interest of maintaining cash flows in the low demand situation in the market, the trader added.
Market sources said that there have not been any reports of export tenders from large producers and this has forced most buyers to postpone bookings in anticipation of cuts in base prices in February, further dampening sentiment in the market.