India: SAIL Auction for Secondary Billet Receives Dull Response Over High Base Price

Steel Authority of India Limited (SAIL) conducted an auction from its central India based Bhilai Steel Plant (BSP) for defective steel products on 07 Mar'20.

Highlights of the auction are as follows:

o Billet - Nearly 2670.1MT defective billets(upto 110) was put up for auction but due to higher base price SAIL manage to booked only in single lot 451.9 MT at base price INR 29,450/MT EXW. In the previous auction conducted on 28 Feb'20 total 806.4MT of Billet was booked at INR 29,450-29,550/MT EXW. According to sources, the billet lot received limited response due to high base price. SteelMint's price assessment for Raipur billet has come down by INR 300-400/MT W-o-W

o Bloom - Total 8143.1 MT Bloom-CC was put up for auction and entire quantity got successfully booked at INR 24,750-25,500/MT EXW which is INR 700/MT higher than previous auction.

Single lot of Bloom RL 152.9/MT offered was booked at INR 25,900/MT

As per SteelMint analysis this auction also attracted participation from only those buyers who were in need of immediate stock to run their plants.

In this auction, total quantity of 34,087.96 MT defective steel was put up for auction, out of which 11,306.6MT (33%) material was sold and remaining 22,781.36MT remained unsold.

To view complete details of auction please - Click here SAIL BSP AUCTION SUMMARY-07 MAR-20