Indian domestic pig iron prices have remained stable during the past week at around INR 22,000/mt ($405/mt) ex-works amid sluggish volumes and low demand from foundries, traders said.
"Market conditions showed insignificant change during the past week. Foundry demand has remained low and as a result only small volumes have been booked," said a Kolkata-based trader.
"However, downward pressures on prices have been marginal since, according to market reports, leading producers have not offered fresh stocks in the domestic market and instead have been focusing on pushing through export offers for March," the trader added.
SteelOrbis had reported on March 4 that leading producers like Neelachal Ispat Nigam Limited (NINL) and Rashtriya Ispat Nigam Limited (RINL) were offering a combined volume of 90,000 mt in export tenders during the current month.
According to market sources, pig iron traders have been awaiting reports regarding these export tenders since they will have a significant impact on short-term price movements.
Traders are reluctant to conclude bookings because of the uncertainty over prices given the potential movement of $5-10/mt in either direction depending on the fate of the export tenders, the sources said.
Producers are expected to accept offers above the $400/mt mark but anything lower may be rejected and the surplus diverted to the domestic market, with the resultant risk of renewed downward pressure on domestic prices since foundry demand has continued to be static, the sources added.