Local Indian
pig iron prices have remained at INR 18,500/mt ($304/mt) ex-works during the past week against a backdrop of lackluster market conditions and low volumes, traders said on Thursday, April 10.
According to a Kolkata-based trader, even an export tender from Neelachal Ispat Nigam Limited (NINL), the first in 2014, has not impacted sentiment as the market perceived the quantity on offer to be too low to have any significant impact on the current oversupply. Government-owned trading house MMTC Limited has floated the export tender for 30,000 mt of
pig iron for May delivery on behalf of NINL.
An Orissa-based trader said that bookings in the domestic market fell substantially during the past week compared to last month as foundries became more cautious, preferring to wait for the Indian national elections to end next month and for greater political stability before increasing their inventories.
Sources said that the market has reacted cautiously to the first export tender of the year from NINL as global trade in
pig iron has continued to be scarce and as price bids against the export tender in dollar terms will not be too attractive given that the Indian currency has gained strength against the dollar.