Local Indian pig iron prices remain stable but buyers stay away anticipating further base price adjustments

Wednesday, 17 July 2019 15:10:07 (GMT+3)   |   Kolkata

Local Indian pig iron prices have remained unchanged during the past week at INR 25,200/mt ($366/mt) ex-works amid very slack trading conditions as buyers have been reluctant to conclude fresh bookings anticipating further base price adjustments in the coming weeks, traders said on Wednesday, July 7.

Market sources said that, while market leader Neelachal Ispat Nigam Limited (NINL) had already lowered base prices earlier in the month, Tata Metaliks lowered base prices during the past week by INR 700/mt, triggering anticipation that other producers could go in for another round of price adjustments, particularly in the absence of any export tenders and given the poor response at domestic e-auction sales.

The sources said that e-auction sales conducted by Steel Authority of India Limited (SAIL) during the past week faced poor bids from buyers and the producer was able to complete sales of the entire volumes on offer only after significantly lowering the base price. It might be noted that in the previous week SAIL had failed to complete transactions for the entire offer at the auction, indicating a low appetite among buyers, particularly from the foundry sector.

However, according to two traders, the local pig iron market has been showing slightly divergent trends, with prices marginally higher in central region markets around Raipur at INR 25,500/mt ($372/mt). The traders said that the higher price has been largely owing to regional disparities stemming from distribution issues faced by smaller pig iron producers in the region, rather than being due to any fundamental upside potential in the short term.

$1 = INR 68.76

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