Indian domestic
pig iron prices have remained unchanged since last week, with major producers keeping December prices stable amid uncertainty relating to the outcome of a major export tender, traders said on Friday, December 7.
"Neelachal Ispat Nigam Limited (NINL) and Rashtriya Ispat Nigam Limited (RINL), two of the largest producers, have decided to keep their domestic prices stable until NINL's export tender for January shipment closes," an Orissa-based trader said.
"NINL has offered 30,000 mt and large producers are awaiting the response. Offers above $420-430/mt would support the domestic market and vice versa," the trader said.
According to market sources,
pig iron domestic offers have remained low at INR 23,000/mt ($ 423/mt) ex-works, the same as in the previous week, with $15-20/mt negotiated discounts for volumes above 25,000-30,000 mt.
Demand from foundries has remained weak, with those in northern
India being operated at low capacity utilization, while at least three in Andhra Pradesh in southern
India have temporarily suspended production, the sources said.
Producers are banking on the NINL export tender to be executed for the domestic surplus to be reduced and on RINL, which had suspended export offers, to re-enter the overseas markets, the sources added.