Indian domestic
pig iron prices have remained at around INR 19,500/mt ($328/mt) ex-works in the past week, against the background of reports of a marginal dip in supplies from large producers in certain central and eastern local markets in
India.
Two Kolkata-based traders said that, though there is no definitive information of production cuts by any of the large
pig iron producers, supply side pressure during the past week was relatively low and traders in the eastern and central Indian markets were able to reduce their inventories.
Demand from foundries around Kolkata has remained low, though the supply side tightening has enabled traders to push somewhat higher volumes of stocks to buyers in the foundry sector without offering discounts, the traders said.
Market sources said that another reason for local prices to remain stable is the expectation for export tenders from large producers over the next few weeks.
According to market reports, Rashtriya Ispat Nigam Limited (RINL) is planning to float a large export tender over the next two weeks and is building up inventories for this purpose, while Neelachal Ispat Nigam Limited (NINL) is also planning to recommence exports shortly with September shipments.