Pig iron tags dip Rs 1000/tonne

The price of foundry grade pig iron is quoting at about Rs 19,000 per tonne

Pig iron prices have declined by Rs 500-1000 per tonne in the last fortnight as a consequence of the cooling affect in the consumer industry.

The price of foundry grade pig iron is currently quoted at about Rs 19,000 per tonne depending upon quality and demand from buyers. Prices have decreased from the Rs 20,700 per tonne for foundry grade pig iron in May when steel prices were looking up and there was no sign of a downward trend.

Similarly, the price of steel grade pig iron has also declined to Rs 17,500 per tonne as compared to Rs 19,100 in the second week of May. C I turning grade pig iron has lost Rs 1000 from the Rs 14,000 quoted in May

"The steel industry is hopeful of gaining its lost glory very soon. Therefore, we are also equally hopeful that the volume of steel production with expanded capacity will increase, thereby, pulling down pig iron demand as well," said an industry expert.

Heavy industry was built up approximately 4-5 months ago fearing rising demand and exports of pig iron. There was surplus production of pig iron which was overbought. Now, they are offloading that into the market.

"Pig iron units from Vishakhapatnam and Bokaro are selling heavily. Demand from exports market has also slowed down causing heavy inventory build up in the domestic market. The demand from the export market is expected to recover from the first week of October," he added.

"Exporters are least interested today as prices are not as attractive as they used to be a few months ago. Shipping and other charges have gone dramatically up. Therefore, we are willing not to export, after completing the current orders, till prices start recovering," another producer said.