Downward pressures have resurfaced in the local Indian pig iron market, with prices moving down by INR 500/mt during the past week to INR 20,700/mt ($322/mt) ex-works, with oversupply worsening, traders said on Wednesday, June 14.
"There is a lot of pig iron volume floating around in the market. There are new sellers entering the market like JSW Steel which has resumed commercial sale of pig iron after a long absence. There is just no demand from foundries to absorb such excess volumes available in the market," a Kolkata-based trader said.
"The price cuts announced by large producers like Neelachal Ispat Nigam Limited earlier in the month have also failed to improve sentiment or transaction volumes," the trader added.
Market sources said that no new export tenders from producers have been reported during the week, which has further aggravated fears of continued excess stocks and impacted the relative stability of prices seen earlier in the month.
$1 = INR 64.29