India: SAIL clocks over 65,000 t pig iron sales at Nov '20 auctions

Leading state-owned steelmaker Steel Authority of India Ltd. (SAIL) has posted over 65,000 t of pig iron (steel grade) sales through e-auctions in Nov'20 - the highest so far in one month, as recorded by the integrated steel producer - and tracked by SteelMint.

Sales offerings from SAIL's Bhilai Steel Plant (BSP) in Nov'20 increased by 13,000 t from 20,000 t in Oct'20. Similarly, the pig iron volume offered by Rourkela Steel Plant (RSP) in Nov'20 was 16,000 t - far higher compared to Oct'20.

Having sold 33,000 t pig iron from Bhilai Steel Plant (BSP) in Nov'20, the company has 30,000 t of stocks at hand and production is going on at a rate of 1,000 tonne per day (tpd). Earlier, the daily production limit was around 500-700 tpd, SteelMint learned from sources.

With the gradual revival of manufacturing momentum, domestic production and demand are rising and steel prices are at a record high.

SAIL is getting a better price realisation in pig iron and the Raipur market's monthly consumption is around 50,000 t per month. That is why BSP has increased the daily production ceiling, local sources told SteelMint.

SAIL has emerged as a major player in the merchant pig iron market at a time when supply tightness of raw materials, coupled with rising prices of alternative feed, has created uncertainty for producers.

SAIL's pig iron prices have inched up across locations in the range of INR 1,200-1,500/t in Nov'20 vis-a-vis Oct'20.

SteelMint's pig iron assessment, DAP Durgapur, inched up to INR 29,950/t in Oct'20 from INR 27,100/t in Sept'20.

At a time when domestic HRC and products prices are surging, and scrap prices are staying stiff, SAIL's pig iron allotment for merchant sales could rise, if raw materials supply concerns persist along with high prices.