Local Indian pig iron prices have remained unchanged during the past week at INR 16,700/mt ($271/mt) ex-works amid dull market conditions and the absence of any significant buying interest, traders said on Wednesday, January 21.
According to a Kolkata-based trader, the market has been awaiting fresh price directions from large producers in tackling the oversupply situation and the negligible off-take by foundries on one the hand and the same for steel grade pig iron in view of falling prices of billets and long products.
There has been some amount of confusion in the market regarding the short-term pricing strategy of large producers, he said.
The trader pointed out that Neelachal Ispat Nigam Limited (NINL), a large domestic producer of pig iron, had floated a tender for the domestic sale of pig iron through government-owned trading house MMTC Limited, seeking offers instead of the usual practice of announcing a price circular.
Market sources speculated that it is possible that pig iron producers are using the market for price discovery and will then issue a price circular, using that as a benchmark rather than fixing a domestic selling price based on their own analysis of market conditions.
$1 = INR 61.62