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