Local Indian pig iron prices have continued to lose ground for the second consecutive week, with prices moving down by INR 200/mt week on week to INR 27,300/mt ($399/mt) ex-works, in anticipation of a base price reduction by producers and the negative outlook on export shipments, traders said on Wednesday, April 3.
Market sources said that Neelachal Ispat Nigam Limited (NINL), one of the largest pig iron producers, had lowered its base price by INR 500/mt late last month, much earlier than usual, for April deliveries.
Hence, other producers are expected to follow suit by adjusting their base prices over the next few days, reacting to the slower off-take by actual users in the foundry segment and by dealers, the sources said.
State-run trading firm MMTC Limited floated an export tender for 30,000 mt of pig iron but this failed to boost sentiment since there have been reports in the market during the past week that at least two other export tenders floated by producers late last month had failed to attract viable bids and thus were cancelled, market sources added.
Weakness in domestic pig iron sales was also indicated from the fact that Steel Authority of India Limited (SAIL) had to lower the reserve price for its e-auction sales during the past week and, despite this, market reports indicate that the sales received a poor response from actual users.
$1 = INR 68.46