Downward pressures have gained momentum in the local Indian
pig iron market, with prices slumping by INR 1,000/mt ($15/mt) week on week to INR 21,200/mt ($317/mt) ex-works in reaction to the continued fall in export shipments and high stocks among market participants, traders said on Wednesday, February 22.
Prices in the
pig iron market have dropped by a total of INR 1,600/mt ($24/mt) over the past two weeks.
"The number of unsuccessful export tenders from large producers has increased since early this month and so fears of oversupply and of export surpluses being pushed into the domestic market have also increased," a Kolkata-based trader said.
"Foundries are also steadily reducing raw material procurement against the backdrop of falling demand for casting and forgings particularly in key export markets like the US," the trader added.
Market sources said that both Rashtriya Ispat Nigam Limited and trading firm MMTC Limited cancelled two export tenders of 20,000 mt and 30,000 mt respectively, having failed to attract viable bids. Although both tenders have subsequently been refloated, market sources said that outlook for successful bids for the tenders looked bleak.
$1 = INR 66.99