Local Indian pig iron prices have maintained their downtrend for the third consecutive week, edging down by INR 100/mt week on week to INR 27,000/mt ($379/mt) ex-works amid persistent weak sentiments over export shipments and low restocking by foundries, traders said on Wednesday, January 30.
Market sources said that, while prices were marginally INR 100/mt higher at INR 27,100/mt in certain select regions like Raipur in central India, this has been largely owing to local issues even as trading volumes have remained at very low levels in these local markets.
“With most producers lowering their base prices twice during January and due to the ongoing oversupply situation, the market is not ruling out further price adjustments next month prompting market intermediaries and foundries to keep fresh bookings at a bare minimum,” a Kolkata-based trade said.
Market sources said that the lack of export shipments and the resistance of buyers to Indian pig iron offers have also negatively impacted sentiment during the past week.
The sources said that a 30,000 mt pig iron export tender floated early in the month by Rashtriya Ispat Nigam Limited (RINL) has been cancelled, with market reports attributing this to the poor bids submitted by buyers, which were not acceptable to the producer.
At the same time, reports in the market suggested that trading firm MMTC Limited has also extended the deadline for submission for export bids for 30,000 mt of pig iron until next month after the poor response from prospective buyers, the sources said.
$1 = INR 71.22