The local Indian pig iron market has moved downwards for the second consecutive week, with prices decreasing by INR 70/mt week on week to INR 23,600/mt ($362/mt) ex-works, amid dwindling export optimism and the softening of billet prices, traders said on Wednesday, September 27.
“The overall bearish sentiment regarding finished steel prices has started to impact semi-finished steel prices too. While off-take from foundries has already slowed down, the weakening of billet prices has also started to slow down the off-take of steel grade pig iron,” a Kolkata-based trader said.
At least two other traders said that since early this month there have been no reports of any new export tenders being floated by any of the large producers, deflating optimism that rising overseas shipments would support local prices.
At the same time, local billet prices have also reversed trend from their previous upward movement, decreasing by INR 200-400/mt over the past one week, triggering a cascading impact in the pig iron market, the traders said.
Two other sources said that, in the absence of any significant export tenders materializing this month, large producers may lower base prices by around INR 500/mt ($8/mt) for October deliveries.
$ 1= INR 65.72