Local Indian pig iron prices have remained stable for the second consecutive week at INR 16,700/mt ($249/mt) ex-works amid dull market conditions with participants awaiting short-term indicators, traders said on Wednesday, July 20.
"There is not much buying interest in the market. Most dealers and end-users are awaiting pricing signals from the main producers like Neelachal Ispat Nigam Limited (NINL) and Rashtriya Ispat Nigam Limited (RINL) for August deliveries and also the fate of some export tenders which are slated to close over the coming week," a Kolkata-based trader said.
At least two other traders have said that, even though local pig iron prices underwent a sharp correction earlier in the month amid the fall in demand from the foundry sector and rising inventories at producers, prices still have substantial downside risks with no export shipments reported in the last few months. Hence, the market is keeping a close eye on an export tender of 50,000 mt by trading firm MMTC Limited due to close later this week, the sources said.
The sources said that a successful closure of the export tender would marginally boost sentiment even if it would not have a fundamental impact as the market is considered to be burdened by an oversupply of around 200,000 mt, the two traders said.
$1 = INR 67.18