Local Indian pig iron prices decline for second week amid poor auction sales, lack of exports

Wednesday, 22 May 2019 13:52:48 (GMT+3)   |   Kolkata
       

The downtrend in local Indian pig iron market has gained momentum during the past week, with prices decreasing by INR 500/mt week on week to INR 27,500/mt ($395/mt) ex-works, with e-auction sales of producers receiving a poor response and given the absence of any export tenders during the given week, traders said on Wednesday, May 22.

Market sources said that e-auction sales of Steel Authority of India Limited (SAIL) have received a very poor response even after the reserve price was slashed with the bulk of volumes on offer remaining unsold.

At the same time, no new export tender has been reported in the market for the second consecutive week, which is an indication that material flowing into the domestic market will put further pressure on local prices, the sources added.

“Foundries are steadily lowering their raw material requirements in response to the sharp fall in castings and forgings in tandem with the automobile sector, the largest buyer, sharply lowering production of vehicles and components,” a Kolkata-based trader said.

“The steady fall in prices and the slowdown in stock movements at both producer and dealers have triggered expectations that large producers will reduce base prices to trigger fresh bookings and dealers have also preferred to wait for new price announcements,” the trader added.

$1 = INR 69.68

 


Similar articles

Ex-Brazil BPI exporters achieve slight rise in latest deals to US amid better scrap sentiment

28 Mar | Scrap & Raw Materials

Japanese crude steel output down 3.8 percent in February from January

27 Mar | Steel News

Price gap between low and high-phosphorus Brazilian BPI narrows in last deals

25 Mar | Scrap & Raw Materials

German crude steel output increases by 4.6 percent in January-February

25 Mar | Steel News

Ukraine’s ArcelorMittal Kryvyi Rih posts lower pig iron output due to Russia’s attacks on energy infrastructure

21 Mar | Steel News

Buyers from Turkey and Italy seek lower ex-Russia BPI prices even though scrap lacks direction

20 Mar | Scrap & Raw Materials

Turkey’s pig iron imports up 5.0 percent in January

20 Mar | Steel News

China’s crude steel output up 1.6% in Jan-Feb despite unexpectedly weak post-holiday demand

18 Mar | Steel News

Ex-Brazil BPI market at standstill due to high prices for buyers, ex-Russia sellers under strong pressure

15 Mar | Scrap & Raw Materials

Local pig iron prices in China - week 11, 2024

15 Mar | Scrap & Raw Materials