Local Indian pig iron prices have remained unchanged during the past week at INR 19,800/mt ($306/mt) ex-works as buyers have remained on the sidelines anticipating a further downturn in prices, traders said on Wednesday, July 5.
“Indian pig iron prices are currently at an eight-month low. With higher dispatches from producers and almost negligible restocking by foundries, the market expects the downturn to persist and hence dealers are seen to be postponing any new transactions,” a Kolkata-based trader said.
Market sources said that several of the large producers like Neelachal Ispat Nigam Limited (NINL) have recorded some of the highest dispatches of pig iron in recent months during June and, coupled with low off-take, there is a lot of stock floating in the market and this is expected to maintain pressures on prices.
Billet prices have also been stagnating for the past several weeks at around INR 28,000/mt ($432/mt) ex-works and this has also resulted in a slowdown in stock movement of pig iron, the sources added.
$1 = INR 64.74