Indian pig iron domestic prices have remained stable at INR 24,000/mt ($441/mt) ex-works, due to insufficient buying interest from foundries and producers' pulling out of export markets, traders said on Thursday, September 20.
"The pig iron market has remained sluggish. Producers have not inclined to reduce prices and further squeeze their margins and foundries have refrained from booking anticipating price falls since the domestic market is in oversupply," a trader based in eastern Indian province of Orissa said.
" Neelachal Ispat Nigam Limited (NINL), one of the largest pig iron producer cancelled a global tender for pig iron shipment in September, as offer prices quoted remained substantially lower than $440/mt expectations," the trader said.
"NINL has reported that it would not float any further global tender for pig iron exports until a revival in international prices. Other pig iron producers are also expected to follow and hence supplies in domestic markets would outstrip demand," he added.
Ex-CIS pig iron prices have slumped to levels of $375/mt FOB Black Sea ports and so there was no opportunity for Indian exporters to get offers above $400/mt. Indian pig iron producers are currently unable to bring down prices, since domestic iron ore prices are on the rise, a Kolkata-based trader said.
Foundries are operating at lower capacities amid low demand for long products and they are already holding stocks of pig iron. New bookings would depend on pick up of construction activities and demand for long products, but foundries are waiting for another $10/mt price cut from domestic producers, a Kolkata-based foundry operator said.