Indian domestic pig iron prices have remained stable in the past week within a range of INR 22,000-22,500/mt ($405-414/mt) ex-works amid reports of successful export orders clinched by producers, traders have stated.
Several traders in the eastern India have told SteelOrbis that leading producers like Neelachal Ispat Nigam Limited (NINL) and Rashtriya Ispat Nigam Limited (RINL) had clinched exports orders totaling 100,000 mt which eased the pressure on prices from the supply side.
However, no confirmation has been available on the prices involved in the pig iron export orders, though some market sources have mentioned an average price a little over $400/mt FOB.
Market sources said that there has been no significant demand uptick from local foundries, resulting in low bookings by traders, and so the tentative revival in the export markets has not caused upward movement of domestic prices.
The sources said several auto manufacturers have been curtailing production through short stoppages of their production lines since inventories have been mounting at auto dealers. Under these circumstances, new orders for castings, forgings and moulds have dwindled, prompting foundries to drastically cut down capacity utilization and demand for pig iron, the sources said.
Traders said that domestic pig iron prices are expected to move sideways within a range of $5-10/mt in the coming weeks in view of low demand from value-adding industries.