Local Indian pig iron prices have edged down by INR 100/mt week on week to INR 27,500/mt ($399/mt) ex-works, but have been lower in several regional markets, with expectations of downward base price adjustments for next month differing among market participants, traders said on Wednesday, March 27.
Market sources said that pig iron prices were down to INR 27,400/mt ($398/mt) in central Indian regions around Raipur.
The sources said that Neelachal Ispat Nigam Limited (NINL) had already lowered its base price by INR 500/mt ($7/mt) for April delivery and had announced a revised price early, while other producers are also expected to adjust their base prices over the next few weeks.
“Almost all market participants are expecting downward adjustments of base prices next month. But they are not sure over the size of the price cuts which will depend on producers’ assessments of the slowdown in market activity,” a Kolkata-based trader said.
“Much of the pressure on local prices is coming from a fall in exports as indicated by the fact that no new export tenders have been floated by any of the large producers during the past week. At the same time, reports in the market indicate that domestic auction sales conducted by Steel Authority of India Limited (SAIL) also evoked a poor response, even after a 15 percent cut in the reserve price,” the trader added.
$1 = INR 68.91