India: SAIL BSP Pig Iron Bookings Improve at Reduced Offers

Steel Authority of India Ltd (SAIL) had floated offers of basic grade pig iron from its central India based Bhilai Steel Plant (BSP) in the beginning of Mar'20. As per report of our credible sources, the company managed to get bookings of around 12,000-14,000 MT pig iron, which is nearly 60-70% of BSP's offered quantity.

-- The average deal price for the material was reported at INR 27,000-27,200/MT EXW-Bhilai and the orders have been largely placed by traders based in Raipur & Bhilai.

-- The current offers in central India through the traders are hovering at INR 27,200-27,300/MT FoR Raipur & INR 26,500-26,700/MT FoR Raigarh.

-- Steel grade prices in other regions remained on downtrend and were assessed at INR 25,300-25,500/MT ex-Durgapur, INR 25,500/MT ex-Bokaro, INR 28,700-28,800/MT FoR Ludhiana & INR 27,500-28,000/MT FoR Hyderabad, excluding of 18% GST.

Sources added that following drop in local billet prices, Indian pig iron industry came under selling pressure. Market sources are expecting prices to fall in future on account healthy availibility and falling demand.