Local Indian pig iron prices have declined for the fourth consecutive week, softening by INR 200/mt ($3/mt) over the past week to around INR 16,700/mt ($263/mt) ex-works, with buyers completely absent from the market, traders said on Wednesday, January 7.
According to a Kolkata-based trader, sentiment in the pig iron market is extremely bearish with low demand and the ongoing downtrend of prices prompting buyers to stay away without concluding any fresh bookings. The trader in question said that, while prices of billets and long products are depressed, lowering demand for steel grade pig iron, at the other end foundries catering largely to sectors like automotive have reduced capacity utilizations, resulting in negligible transactions across major markets in central and northern India.
No new export offers from any of the large producers have been reported in the market over the past week, but the market is keeping a close watch on the response to the export tenders to be opened later this week, sources said.
However, exports have also been dogged by uncertainties with global pig iron prices softening, while the weak Indian currency could prompt producers to accept the lower-than-expected bids which had been rejected last month, the sources added.
$1 = INR 63.34