Local Indian pig iron prices have edged down by about INR 200-300/mt ($3-4/mt) to around INR 17,700/mt ($283/mt) ex-works on higher supplies, traders said.
According to Kolkata based traders, reports in the market indicated that major large producers like Neelachal Ispat Nigam Limited (NINL) and Sesa Sterlite had increased their pig iron production substantially during the period of April-December 2013.
In absence of any export tenders reported by large producers the excess supplies were being pushed into the local markets putting renewed pressures on prices and forcing traders to maintain high discount around INR 500/mt ($8/mt) to keep inventories moving.
Market sources said that higher supplies coupled with persistent depressed demand from the foundry sector had forced traders to double discounts from INR 300/mt ($4/mt) last month to INR 500/mt ($8/mt) over current lower base price of INR 17,700/mt.
While at beginning of the year discounts were limited to few markets in east and south, poor buying sentiments has forced traders to extend discounts to all geographies including west and the north.