Prices in the local India pig iron market have declined marginally by INR 100/mt during the past week to INR 23,200/mt ($358/mt) ex-works, with the correction in the market continuing for the second consecutive week against the backdrop of a cautious mood among dealers, traders said on Wednesday, November 22.
“The correction in prices has persisted, though the declines in prices have been marginal. While the current mood is cautious, the outlook for the medium term does not seem to have been dented,” a Kolkata-based trader said.
“One of the reasons for prices creeping lower are the reports in the market that a few medium-scale private sector producers of pig iron located in central India are lowering offers. But this is more due to local reasons of each of these producers rather than any change in fundamentals, which I think still remain positive,” the trader added.
Sentiments has been partially impacted by reports that Rashtriya Ispat Nigam Limited has extended the deadline for its export tender for 25,000 mt to December17, from the previous date of November 30, according to two other traders.
The traders, however, added that the extension of deadline is possibly owing to operational reasons and that it is too early to forecast any change in export market dynamics.
Market sources said that optimism over pig iron prices despite the current corrections is also supported by the fact the local billet prices are seen to be consolidating at levels of around INR 29,100/mt ($447/mt) ex-works.
$1 = INR 64.83