India: SAIL Pig Iron Auction Receives Dull Response Despite Reduction in Base Price

SAIL conducted auction for around 3,800 MT steel grade pig iron today from its Rourkela Steel plant (eastern India). The auction received quite dull response as almost all material remained unsold, as per participants report with SteelMint.

As per sources, in today's auction the company had kept base price at INR 26,600/MT which is down by INR 650/MT (USD 9.5) as against previous auction which base price was at INR 27,250/MT (ex-mill). However despite sharp cut in base price the company was unable to attract buyers as base prices was high looking at offers through the private mills in neighboring markets. As per participants RSP has sold out around 200-300 MT (5-7%), while remaining quantity remained unsold in today's auction.

-- For instance, as per sources - Mesco Steels has cut prices recently by INR 500/MT to INR 25,300-25,400/MT ex-Jajpur, Odisha, eastern India.

-- Similarly the prices in Durgapur, eastern India, dropped by around INR 300-500/MT W-o-W and currently stood at INR 26,300-26,500/MT ex-plant.

-- Coming to central India, Raigarh Jindal Steel has slashed prices by INR 500/MT to INR 26,200-26,300/MT ex-plant. Also in Raipur offers through the traders end reduced and currently hovering at INR 26,700-26,800/MT FoR.

-- Meanwhile in Jharkhand, eastern India the offers through the private plants reduced to INR 26,500/MT, however buying interest learned at INR 26,000/MT ex-plant.

Prior to this, RSP's last auction was held on 24th Jun'19 for 3,800 MT steel grade pig iron, in which near to 500-600 MT (14-15%) material was booked by local furnaces and remaining about 85% material remained unsold at the base price of INR 27,250/MT ex-mill.