Local Indian pig iron prices have marginally edged down by around INR 100/mt ($1.5/mt) in the past week to about INR 17,200/mt ($271/mt) ex-works amid dull market conditions and nominal price adjustments by producers, traders said on Wednesday, December 17.
Major domestic pig iron producer Neelachal Ispat Nigam Limited (NINL) has lowered its prices by INR 100-400/mt ($1.5-6/mt) based on volumes, for deliveries in the current month, but sources said that buyers' response has continued to be tepid.
Sources said that government-owned trading house, MMTC Limited re-floated an export tender on behalf of NINL for 40,000 metric tons of pig iron, the previous bids for which had been rejected last month as the offer price fell short of expectations.
Market sentiments are negative since export offers from local producers fail to find any buyers or prices are quite low, with the oversupply situation in the market worsening, the sources said.
Reports culled from various traders indicated that about 100,000 metric tons of surplus pig iron is affecting the market and local demand will not be sufficient to absorb this excess material.
However, some market players have said that, with the Indian rupee weakening below the INR 63 to a dollar level, pig iron exporters might accept offers around $300/mt which had been rejected earlier.
$1 = INR 63.58