Indian pig iron prices stable at lower levels as export orders fetch low prices

In the Indian domestic market, pig iron prices have remained unchanged over last week at INR 24,000/mt ($431/mt) ex-works amid low demand from foundries and a lack of export orders resulting in domestic oversupply, Indian traders said on Thursday, August 30.
 
"There is no demand for pig iron these days. Procurement from foundries and mini-mills are at the lowest level," a Durgapur-based trader said.
 
"Electric arc furnace production of long steel products is down dramatically because of the slowdown in construction. Automotive companies are re-drawing their production schedules, resulting in low orders for parts and moulds from foundries," the trader added.
 
"Two large pig iron exporters, Rashtriya Ispat Nigam Limited (RINL) and Neelachal Ispat Nigal Limited (NINL), have received a weak response to their export tenders, far below the offer price of $471/mt, indicating global oversupply and room for a further cut in domestic prices," said a trader based in Vishakhapatnam in southern India, where the RINL plant is located.
 
Major Indian pig iron producers have cut prices by $9-10/mt twice over the past month, in response to weak domestic demand and low export offer prices.
 
MMTC Limited, the government-owned trading house, has been able to conclude an export order of 30,000 mt of steel grade pig iron during the past week, but according to market sources the final offer was close to current domestic prices.
 
Apart from reduced demand from the construction and automotive sectors, low offtake of pig iron by foundries is also due to reduced operating hours in face of severe power shortages, according to a foundry operator in the outskirts of Kolkata.