Local Indian pig iron prices stable but negative sentiment persists

Wednesday, 29 May 2019 15:51:59 (GMT+3)   |   Kolkata

Local Indian pig iron prices have remained stable during the past week at INR 27,500/mt ($394/mt) ex-works, with a marginally improved response from buyers at e-auction sales by large producers even though the outlook for the market remains negative, traders said on Wednesday, May 29.

Market sources said that, in contrast to earlier in the month when the bulk of volume offers at e-auction remained unsold, the e-auction conducted by Steel Authority of India Limited (SAIL) last week attracted a slightly improved response with around 50 percent of volumes on offer being sold through competitive bids which contributed to some stability in the market.

“Despite prices remaining stable, sentiments in the market continue to be negative. There have been no reports of any export tenders floated by any of the large producers over the past few weeks. This, coupled with higher production reported by producers, means that prices can be expected to remain under supply-side pressure in the coming weeks,” a Kolkata-based trader said. 

“One of the biggest concerns is the slowdown in restocking by the foundry sector. The sharp fall in sales and production of automobiles has depressed demand for castings and forgings, and hence most foundries catering to this segment have lowered capacity utilizations and reduced raw material restocking,” the trader added.

A section of the market said that buyers are also postponing fresh bookings anticipating at least a marginal adjustment in base prices by producers for June deliveries.

$1 = INR 69.84

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