Over the past week, prices in the local Indian pig iron market have remained stable at INR 28,800/mt ($411/mt) ex-works, supported by revived exports but local buying remained very slack amid reports that large producers have started to lower base price for the second time this month, traders said on Wednesday, December 19.
Market sources said that large pig iron producers like Rashtriya Ispat Nigam Limited (RINL) floated an export tender for 25,000 mt while trading firm, MMTC Limited acting on behalf of producer, Neelchal Ispat Nigam Limited (NINL) floated an export tender for 30,000 mt, both lot for early January delivery.
The market sources also said that NINL lowered base price by INR 600/mt on Monday and other producers are expected to follow suit in course of this week.
“That producers are going in for a second base price adjustment during December is an indication of negative market environment and high inventories with producers,” a Kolkata based trader said.
“Local pig iron prices are maintaining till now largely on reports of exports. But prices will react with a lag as soon as most large producers complete lowering the base price by end of this week,” he added.
$1 = INR 70.12