Losses in the local Indian pig iron market have continued to mount for the fourth consecutive week with prices moving down by INR 300/mt during the past week to INR 23,000/mt ($353/mt) ex-works, on sustained fall in demand from foundries and high stocks with market participants, traders said on Wednesday, October 11.
Pig iron prices have moved down by INR 2,000/mt since prices hit a three-year high four weeks ago, market sources pointed out.
“The high level of pig iron stocks with dealers can be gauged from the fact that even one of the largest producer Neelachal Ispat Nigam Limited (NINL) stopped sales for plant maintenance but this also failed to have any impact on prices,” a Kolkata-based trader said.
“The fall in demand has been most acute in the foundry sector. Most foundries in small and medium sector are forced to sharply cut down on completing export production of castings and forgings as they are forced to pay tax under Goods and Service Tax and get refund of the same after two months leading to working capital crunch,” the trader added.
Market sources said that no new export tender has been floated during the past week. The sources said that there have been no reports of export shipments over the past one month and this impacts sentiments amid apprehensions of higher supply side pressures on prices in the local market.
$1 = INR 65.23