India: Around 25,000 t of defective steel sold by SAIL-BSP at recent auction

Steel Authority of India Limited (SAIL) had conducted an auction from its Bhilai Steel Plant (BSP) in Chhattisgarh for defective steel products on 19 Apr'22. The bid prices for steel blooms dropped by INR 2,274/t ($29/t) against the previous auction on 23 Mar.

The decline in bid prices was largely in line with the decline in spot prices seen earlier this week.

At the auction, buyers booked around 8,246 t of continuous cast bloom at a weighted average price of INR 52,552/t exw and around 4,584 t of billet at 56,000/t exw.

Around 4,810 t of plate end searing materials were also offered at the auction, with buyers booking the entire quantity at INR 53,670/t exw.

As per latest updates, the company's management has approved all the above prices.

Highlights:

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

For complete details of all other product please click here

A total of 29,235 t of defective steel had been put up for auction out of which 84.25%, i.e. 24,631 t, got sold while the remaining 4,604 t was rejected by the company's management on expectation of a higher bid price.

SteelMint's daily billet (100mm, IF) index was assessed at INR 58,200/t exw-Raipur on 19 Apr.

Outlook
Some re-rollers said the market is worried over power shortage due to the coal crisis in 12 states that has reared its head once again after Oct'21. According to analysts, in the first fortnight of Apr, domestic power demand hit a 38-year high for the month. Andhra Pradesh, Maharashtra, Gujarat, Punjab, Jharkhand and Haryana are facing power cuts ranging from 3% to 8.7%.

The private power sector has urged the government to take immediate steps to replenish the coal inventory at thermal power stations to avert the crisis.