Local Indian pig iron prices have continued to seek lower levels for the second consecutive week, moving down by INR 500/mt week on week to INR 26,800/mt ($387/mt) ex-works, reacting to the poor response to the producers’ auction sales, while even fresh export bids have failed to boost sentiment, traders said on Wednesday, June 26.
Market sources said that e-auction sales conducted by Steel Authority of India Limited (SAIL) evoked negligible interest from buyers and even the lowering of the reserve price failed to attract any bids, indicating low appetite for the intermediate raw material among actual users.
The market expects producers to lower their base prices next month, after a price adjustment last week, and this has prompted market intermediaries to postpone their fresh bookings till later, the sources said.
According to market sources, government trading firm MMTC Limited acting on behalf of steel producer Neelachal Ispat Nigam Limited (NINL) floated an export tender for 30,000 mt, while producer Rashtriya Ispat Nigam Limited (RINL) floated an export tender for 21,000 mt.
However, even reports of export bids have failed to improve sentiment or offer any support to local prices, indicating the large oversupply in the local market and low off-take by key consuming sectors like foundries, the sources added.
$1 = INR 69.30