India: About 15% of defective steel sold in SAIL-BSP's recent auction

Steel Authority of India Limited (SAIL) conducted an auction from its Chhattisgarh-based Bhilai Steel Plant (BSP) for defective steel products on 14 May 2022. Bid prices for steel blooms decreased by INR 2,350/t ($30/t) against the previous auction conducted on 6 May 2022. According to a recent update received, the blooms lot was rejected by the management.

Low demand for semi-finished products was a major factor behind the sharp fall in prices. Trade sources informed SteelMint that the near-term price outlook is bleak.

Overall semis demand remains subdued as finished steel demand is very dull despite adjustments in trade discounts by the resellers.

A total of 8,833 tonnes (t) of defective steel were auctioned. Due to scrap shortage in the market, buyers actively participated and bid for all lots. However, on expectations of higher prices, only 15% of the material, equivalent to 1,390 t, was approved by the management.

Highlights:

Quantity in t
Prices in INR/t on exw-Bhilai basis

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