Prices in the local Indian pig iron market have remained stable for the second consecutive week at INR 29,000/mt ($422/mt) ex-works, even as new export tenders during the past week have failed to revive sentiments amid reports of oversupply, while market participants are awaiting pricing signals from large producers.
Market sources said that discounting has continued in select regional markets in eastern and central India with pig iron prices pegged at INR 28,500/mt ($415/mt), net of discounts, indicating that the market is still characterized by significant oversupply.
“Market participants are expecting an adjustment to base prices in view of oversupply and producers operating at maximum capacity. However, it is still not clear whether prices will be adjusted and dealers are awaiting August pricing signals from mills before concluding any new deals,” a Kolkata-based trader said.
“The negative medium-term outlook can be gauged from the fact that, despite new export tenders in the past week, they have done little to revive sentiments,” the trader added.
Market sources said that government trading firm MMTC floated export tenders for two lots of pig iron during the past week, for 30,000 mt and 10,000 mt, after the trading firm had successfully concluded another export contract for 30,000 mt early in the week.
$ 1 = INR 68.69