Prices in the local Indian pig iron market have remained stable during the past week at INR 22,800/mt ($335/mt) ex-works, as buyers have significantly reduced their fresh bookings as they await new pricing directions, traders said on Wednesday, January 25.
“Market activity has dipped due to a number of uncertainties in the market,” a Kolkata-based trader said.
“Firstly, there are no indications of which way the pricing strategies of large producers will go next month. Export transactions are going up but domestic transaction volumes are falling and as a result producers’ pricing will be key to short-term trends. Secondly, buyers are waiting for the national budget early next month to get an indication of government spending aimed at kickstarting industrial production,” the trader added.
However, at least two traders said that there are indications that the short-term trend will be negative, pointing out that in at least two regions - Raipur in central India and Ahmedabad in the western India - traders have commenced offering marginal discounts of around INR 200/mt ($3/mt) as foundries in these regions are facing severe liquidity issues in terms of restocking raw material, i.e., foundry grade pig iron.
$1 = INR 68.17