Prices in the local Indian pig iron market have remained stable during the past week at around INR 29,000/mt ($423/mt) ex-works, amid mixed signals of revived exports but an increase in discounts in a few regional markets, traders said on Wednesday, July 18.
Sources said that trading firm MMTC on behalf of Neelachal Ispat Nigam Limited (NINL) has successfully concluded an export contract for 30,000 mt. However, it was reported that the earnings of Steel Authority of India Limited (SAIL) from domestic auction sales of 13,000 mt of pig iron were lower that expected, the sources said.
At the same time, dealer discounts for pig iron deliveries in eastern and central India increased with the material available at around INR 28,300/mt ($413/mt).
"The mixed signals of successful export contracts and the increase in discounts in the Indian market has made market participants cautious and unwilling to increase booking volumes, leading to low market activity,” a Kolkata-based trader said.
“The slight weakening of billet prices by around INR 300/mt to the range of INR 35,100-35,300/mt ($512-515/mt) has also depressed sentiment in the pig iron market,” the trader added.
$1 = INR 68.6