India: 40% Pig Iron Booked in SAIL's Auction

SAIL - India's largest steel producer conducted auction for around 1,500 MT steel grade pig iron today from its Rourkela Steel plant (eastern India). The auction received mild response as close to 40% was sold out at the base price.

As per sources, in today's auction the company had kept base price at INR 24,000/MT (USD 338) ex-plant (Rourkela), in which near to 600 MT pig iron has been booked by participants while remaining about 900 MT(60%) material remained unsold.

Sources believe that, as the prices through the private mills are firm and are not quite low, the response in RSP auction remained on average basis.

-- Offers through the Mesco Steel in Jajpur, Odisha learned at INR 23,000/MT ex-plant.

-- In Durgapur, Neo Metaliks has stated poor demand at the offers of steel grade material at INR 23,800/MT ex-plant.

-- As per officials from Jindal Steel near to 1,000 MT pig iron sold in local market at INR 24,200/MT ex-plant, Raigarh. Also, the producer has resumes sale for panther shots (granulated pig iron) at around INR 22,500-22,700/MT ex-Angul, Odisha.

-- Stockiest in Raipur are dealing for steel grade material at around INR 23,900-24,000/MT FoR.

In line Foundry grade pig iron, the stockiest in northern region stated quite dull demand due to low cost steel grade pig iron.

As per them cheaper landed cost of steel grade pig iron has made demand for foundry material weak at offers of INR 29,400-29,500/MT ex-Delhi, INR 29,900-30,000/MT FoR Ludhiana & around INR 32,000/MT FoR Ahmedabad, excluding of 18% GST.

The landed cost of central & eastern India's steel grade pig iron in northern region is assessed at INR 26,000-26,200/MT FoR Delhi/Ludhiana excluding 18% GST.