Local Indian pig iron prices have weakened during the past week, edging down by INR 200/mt ($3/mt) to around INR 16,400/mt ($261/mt) amid leading producers' price cuts and apprehensions of a further increase of oversupply pressure, traders said on Wednesday, March 11.
Market sources said that Rashtriya Ispat Nigam Limited (RINL) has cut its domestic pig iron offers by INR 1,000/mt ($16/mt) presumably to push volumes into the local market after failing to get acceptable export offers during the past month.
Similarly, Neelachal Ispat Nigam Limited (NINL) has cut its domestic prices by INR 600/mt ($9.507mt) amid falling international prices and lower-than-expected offers in response to export tenders.
The sources said that fears of oversupply have dogged the market further following an open offer from the Rourkela steel mill of Steel Authority of India Limited (SAIL) for 80,000 mt of pig iron, reflecting the high pig iron inventories of steel producers.
Pig iron supplies from SAIL are expected to gather further momentum following the launch by the company of the blast furnace at its Burnpur steel mill, the sources added.
$1 = INR 62.78