India: SAIL Increases Base Price in Pig Iron Auction; Entire Quantity Booked

SAIL pig iron auction from Rourkela Steel Plant (RSP) fetched bids higher by INR 750-900/MT (USD 10-13) over the set base price.

SAIL (Steel Authority of India Limited) conducted auction for around 2,500 MT steel grade pig iron today from its Rourkela Steel plant (eastern India). The auction received quite good response as entire quantity offered got booked.

As per sources, in today's auction the company had increased base price by INR 450/MT to INR 23,500/MT as against last auction at INR 23,050/MT (USD 351) & the total material has been sold out with an increase in prices by INR 750-900/MT to INR 24,250-24,400/MT; ex-plant, Rourkela.

Participants believe that, due to short supply & surge in prices by private producers has resulted in good response in RSP's auction. Notably, due to short supply, steel grade pig iron prices in eastern India up by INR 400-700/MT W-o-W and there is good demand through the furnaces in local market.

Prior to this, RSP's last auction was held on 6th Dec'19 for 7,400 MT steel grade pig iron, in which total offered quantity was sold out with an increase in the bid price by INR 50-100/MT to INR 23,050-23,150/MT ex-plant, Rourkela.

SAIL is one of India's major steel producer in terms of capacity which is about 21 MnT per annum.