Local Indian pig iron prices have remained unchanged for the second consecutive week at INR 30,000/mt ($404/mt) ex-works, amid a slowdown in off-take signaled by the emergence of minor discounts in select regions and concerns over excess supplies coming into the market, traders said on Wednesday, October 10.
Market sources said that while, discounts had been discontinued early in the month, lower offers in the central Indian markets at INR 28,800/mt ($388/mt) net of a discount of INR 200/mt have surfaced again, indicating that stock movements have slowed down.
“We learn that a pig iron auction conducted by Steel Authority of India Limited’s Rourkela Steel Plant, during the past week did not get any response, which impacted market sentiment,” a Kolkata-based trader said.
The market is also concerned about the increase in pig iron supplies, which in the absence of any significant domestic demand uptick and the lack of export tenders during the week, could put pressure on prices, sources said. They said that one of the largest domestic pig iron producers, Neelachal Ispat Nigam Limited (NINL), had reported an 81 percent jump in pig iron production during the July-September this year.
$1= INR 74.23