Local Indian pig iron prices have continued to edge down for the third consecutive week, with prices moving down by INR 650/mt week on week to INR 26,650/mt ($385/mt) ex-works even though in some regional markets the fall was sharper during the past week amidst confusing pricing signals from various producers, traders said on Monday, April 10.
In the central regional market around Raipur, pig iron prices have decreased to INR 26,250/mt ($379/mt), the traders said.
According to sources, market participants have been confused by the conflicting pricing signals from producers. They said that, while the largest state run producer Neelachal Ispat Nigam Limited (NINL) had decided to maintain its base prices unchanged for current month deliveries, several smaller private sector producers led by Tata Metaliks were seen to be increasing their base prices by around INR 500/mt, citing rising billet prices.
“The market is largely ignoring the higher prices of the smaller producers considering that, with the lack of export offers during the week and the higher supply availability, the contrarian pricing of small producers is unlikely to be sustained throughout the month,” a Kolkata-based trader said.
“With no reports of any export tenders being successfully concluded available in the market, sentiment has remained negative and supply-side pressures on prices will be sustained as larger producers will still continue to dictate short-term price trends,” the trader added.
$1 = INR 69.17