India: SAIL Pig Iron Auction Receives Improved Response Upon Reduction in Base Price

SAIL conducted pig iron auction today for 2,450 MT steel grade material from its Rourkela Steel plant (eastern India). The participation remained weak.

As per sources, in today's auction the company has reduced base price by INR 2,500/MT (USD 35) to INR 27,800/MT as against last auction held on 13th Feb'20, in which base price for the same quantity was kept at INR 30,300/MT EXW-Rourkela.

However despite a sharp reduction in base price, the company has received poor response in today's auction as only about 250 MT (10%) material has been sold at a base price.

Participants believe, due to falling steel prices as well competitive offers of pig iron through the private mills, the RSP's auction received dull response.

It should be noted that, secondary steel prices in India continued downturn due to weak demand, hence pig iron offered through the private producers are under pressure and are currently hovering at INR 27,500-27,700/MT ex-Jajpur, INR 27,000-27,200/MT ex-Jharkhand, INR 27,400-27,800/MT ex-Durgapur, INR 28,100-28,300/MT ex-Raipur/Raigarh, INR 28,500-28,700/MT FoR Hyderabad & INR 29,300-29,400/MT FoR Ludhiana.