Indian Pig Iron prices steady as low production offsets weak demand     

Pig Iron markets in
the country witness buying in small quantities on various reasons as below.

Mandi Gobindgarh: Plants are running at 60% capacity on low
demand and power cut is expected to start from tomorrow.

Raipur: Demand for the material, along with current offers is
ok and no major change is anticipated in near term as consumption of finished
products is less.

Jharsuguda: There is a shortage of material but prices
are on the lower side as overall market sentiment is weak.

Rourkela: Demand is steady and market is expected to
remain stable.

Giridih: Market is decent but unpredictable too.
Production has come down on power cut issues.

Durgapur: Material is not available in sufficient
quantity. Issues such as scarcely available labor due to summer heat and
liquidity crunch in market has affected demand. A plant that had been shut from
sometime, reasons  unknown, has started operating, making Foundry Grade
available. Exports has  come down by 25%. China is
quoting cheaper price, so more of exports is taking place from China.

Hyderabad: Demand is anticipated to improve along with
prices the next month as demand from North remains dull during May and June but
improves in July.  

Vizag: E-auction of 3,000 tones of
Foundry Grade material is expected to take place this month. Economy is down
and sales is being affected on dull finished markets and issues such as less availability of scrap, ban on
sand mining, political turmoil and less action in construction sector in Andra
Pradesh markets. Exports is expected to take place next month.

Delhi: To get rid of inventory, sellers are ready
to offer material in the range of Rs 30,500-31,500/MT. Buying is low but demand
may rise this month as long products sales improve in June. Weak demand from
Automobile, textile and infrastructure sector has hit markets. Due to summer
heat, labor is scarcely available affecting finished market and
construction activities.  

According to market
participants, some exports can be anticipated if production of the material
comes back to normal.