Local Indian pig iron prices have edged down by INR 300/mt week on week to INR 28,000/mt ($399/mt) ex-works, in reaction to slackening demand and the slowdown in restocking seen earlier in the month, traders said on Wednesday, May 15.
“Both demand and off-take by foundries have slowed down during the past week and intermediaries have also been reducing restocking volumes as they are uncertain of the short-term pricing trends,” a Kolkata-based trader said.
“An indicator was the reported poor response to e-auction sales of pig iron conducted during the week by Steel Authority of India Limited (SAIL) where the bulk volume on offer remained unsold,” the trader added.
According to market sources, pig iron prices in select markets like Raipur in central India have indicated a sharper fall to INR 27,800/mt ($396/mt), with a section of the market maintaining that the depressed regional market condition could become widespread unless key drivers improve in the short term.
Market sources said that the lack of reports of export tenders from any of the large producers during the week has also contributed to bearish sentiments among buyers.
$1 = INR 70.24