Local Indian pig iron prices have edged down by INR 400/mt during the past week to INR 27,600/mt ($392/mt) ex-works amid cautious restocking activity by dealers, traders said on Wednesday, March 3.
“After the steady rise in pig iron prices in recent weeks and given expectations of a correction, buyers became cautious and have reduced their fresh bookings. However, I expect the correction to be limited as the underlying fundamentals remain unchanged,” a Kolkata-based trader said.
“Fresh exports will support local prices. This is backed up by Rashtriya Ispat Nigam Limited’s (RINL) fresh export tender for 25,000 metric tons floated during the past week and steady overseas shipments will keep domestic supplies in check and support local prices,” the trader added.
However, according to market sources, the export tender floated by RINL is in lieu of an export bid last month which was cancelled after bids received did not match the expectations of the producer.
A section of the market has maintained that buying interest has fallen significantly as is evident from the fact that over 90 percent of volumes offered for e-auction sales by Steel Authority of India Limited (SAIL) have remained unsold during the past week.
$1 = INR 70.39