India: Bids at SAIL's secondary steel auction continue to trend down

Steel Authority of India Limited (SAIL) had conducted an auction from its Bhilai Steel Plant (BSP) in Chhattisgarh for defective steel products on 8 Nov'21. The bid prices for steel blooms dropped by INR 1,640/t ($22/t) against the previous auction conducted on 27 Oct '21. The drop in bid prices was largely in line with the decline in spot prices brought on by the fall in sponge iron prices as well as weaker steel demand.

The entire offered quantity of bloom-cc was booked at a weighted average price of INR 39,010/t exw. But the company's management has approved only a single lot at INR 39,600/t exw.

A total of 17,684 t of defective steel had been put up for auction out of which only 39.54%, ie, 6,993 t of the material, got sold, while 10,691 t remained unsold.

At the previous auction on 27 Oct, the share of the quantity that got sold out of the total material on offer was 91.92%.

SteelMint's daily billet index was assessed at INR 44,500/t exw-Raipur on 8 Nov'21. Limited buying interest in the finished steel market has put further pressure on billet prices. Furthermore, the index fell to almost a one -month low on 9 Nov'21.

Highlights:

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

For complete details of all other products, please click here->BSP approval lot summary