Local Indian pig iron prices have moved on a sideways trend during the past week at around INR 16,400/mt ($264/mt) ex-works against a background of low buying activity and a further slump in demand from the foundry segment, traders said on Tuesday, February 17.
According to a Kolkata-based trader, volumes in the market have been sustained by a modest off-take from non-integrated steel mills and have provided support for the stability of prices even though fresh buying by foundries has declined further amid a further slump in demand from auto companies and industrial mouldings due to reports of a continuing slowdown in these key manufacturing sectors.
The trader said that reports received in the market have indicated that automobile manufacturers have reduced orders for castings and are working with minimal inventories as auto sales growth is failing to look up after the government withdrew excise duty concessions last month.
Non-integrated steel mills are also cautious about concluding any large fresh bookings since prices of billets and long products have been weakening in the absence of strong demand from the construction industry, a trader said.
Sources, however, said that sentiments are largely negative owing to the absence of any large-volume export orders since early January and a lot of exportable pig iron is being diverted to the domestic market by producers.
Hence, the market is keeping a close eye on a new 40,000 mt export tender for steel grade pig iron floated by government trading house MMTC on behalf of Neelachal Ispat Nigam Limited (NINL) with February 26 as the last date for submission of offers, the sources added.
$1 = INR 62.18