Following the softening seen in the previous week, local Indian
pig iron prices have languished at around the unchanged level of INR 18,000/mt ($296/mt) ex-works during the past week amid an absence of any buying interest, traders said on Wednesday, September 17.
According to a Kolkata-based trader, besides the sufficient stocks at the dealers' end, there has been a further seasonal weakening of demand due to rains persisting in large parts of the country and also as the start of the festival season at the end of this month has caused dealers to be cautious about concluding fresh bookings.
He said that, even after producers' cut prices by INR 200/mt ($3/mt) earlier this month, foundry grade
pig iron stock movements have slowed down even though in the northern and central markets in
India traders have increased their discounts to INR 400/mt ($7/mt).
Market sources said that, with demand and prices of billets softening over the past week, domestic producer Steel Authority of
India Limited (SAIL) is offering 10,000 mt of
pig iron for sale on the open market, thereby increasing supply side pressures.
$1 = INR 60.91