The local Indian
pig iron market has declined for the third consecutive week, with prices moving down by INR 800/mt week on week to INR 21,200/mt ($327/mt) ex-works amid combined factors including producers' price reductions, the bearish export outlook and weak billet prices, traders said on Wednesday, May 24.
"Local
pig iron prices have declined by INR 1,000/mt in the course of just two weeks, reflecting an aggravation of the bearish sentiment in the market," a Kolkata-based trader said.
"Even price cuts by producers towards the end of the month have failed to improve market conditions hit by low activity and buyers' reluctance to make fresh bookings," the trader added.
Market sources said that all leading
pig iron producers including Neelachal Ispat Nigam Limited and Rashtriya Ispat Nigam Limited have reduced their
pig iron base prices by around INR 1,000-1,400/mt.
The sources said that adjustment of
pig iron base prices towards the end of the month instead of during the first week indicates that rising inventories and the slowdown in stock movements have been putting renewed pressure on prices for the third consecutive week.
The market also became more bearish on the export outlook after trading firm MMTC Limited cancelled an export tender for 30,000 mt of
pig iron, though no official reason was available in the market, the sources added.
$1 = INR 64.85