Local Indian
pig iron prices have remained stable at around INR 16,500/mt ($242/mt) ex-works during the past week, even though producers have cut their base prices, traders said on Wednesday, February 3.
"Contrary to market expectations that producers would keep their base prices unchanged in the remaining two months of the current fiscal year, producers have reduced their prices at the start of the current month," a Kolkata-based trader said.
"However, the price cuts have failed to impact market prices as dealers are not willing to pass on the benefit to buyers, since volumes and market activity are very low," the trader added.
Market sources said that Neelachal Ispat Nigam Limited (NINL) on Monday, February 2, announced a reduction in its base prices by around INR 500/mt ($7/mt).
The sources said that the reductions in base prices by producers indicate that they are saddled with high stocks.
NINL through the trading firm MMTC Limited is offering 15,000 mt of steel grade
pig iron via e-auction, while 20,000 mt of
pig iron from Steel Authority of
India Limited (SAIL) is also being offered, with these offers reflecting high inventories. However, interest in the offers is on the low side.
1$ = 68.14 INR