Over the past week, prices in the local Indian pig iron market have remained stable at INR 28,700/mt ($412/mt) ex-works, amid low market activity due to year-end considerations but outlook and sentiments have continued to remain bearish on the back of concerns regarding higher supply-side pressures and low export opportunities, traders said on Wednesday, January 2.
“The fact that no export tenders were concluded during December and that the response to auction sales conducted by Steel Authority of India Limited (SAIL) received a very poor response with local buyers staying away citing a very high reserve price aggravated concerns over too much material and few buyers in the market,” a Kolkata-based trader said.
“Market participants are expecting another round of base price cuts this month after two similar price adjustments last month,” the trader added.
Producers Rashtriya Ispat Nigam Limited (RINL) and Neelchal Ispat Nigam Limited (NINL) which had in mid-December had floated export tenders for 25,000 metric tons and 30,000 metric tons respectively have not reported any conclusion of transactions to date, fuelling pessimism over export shipments and the likelihood of reduction of inventories at producers, market sources said.
$1 = INR 69.61