Local Indian pig iron prices have showed divergent trends across regional markets during the past week with prices remaining at INR 27,000/mt ($377/mt) ex-works in some regions while they have decreased by INR 200/mt on the lower end in central regions to INR 26,800/mt ($374/mt) ex-works even as some producers started a downward revision in base prices and given the dismal export outlook, traders said on Wednesday, February 6.
Sources state that prices are expected to weaken over the next few days as most producers are considering reducing their base prices by INR 500/mt over the next week, according to market reports.
Market sources report that the negative bias has been evident from reports that some plants of Steel Authority of India Limited (SAIL) have lowered reserve prices for e-auction sales of pig iron after such auctions received a poor response last month from end-users.
On the export front too, overseas buyers are not responding to tender bids, the sources said, citing reports that trading firm MMTC Limited has had to cancel an export offer for 30,000 metric tons last week and issue fresh tenders after bids did not match expectations.
$1 = INR 71.63