India: SAIL Pig Iron Auction Receives Weak Response; 25% Material Booked

SAIL - India's largest steel producer conducted auction for around 2,800 MT steel grade pig iron today from its Rourkela Steel plant (eastern India). The auction received dull response with around 25% of the material offered got booked at base price. 700 MT pig iron has been booked by local mills & traders, however remaining about 2,100 MT (75%) material remained unsold .

As per sources, in today's auction the company had kept base price at INR 24,000/MT (USD 338) ex-plant, Rourkela. This base price is similar to the base price of last auction held on 31 Oct'19 .

"It seems that the key factor behind dull participation is sufficient availability of pig iron with the major furnaces in Odisha market" sources shared.

In line offers in neighboring markets are mentioned below

-- Mesco Steel in Jajpur, Odisha is learned to have offering pig iron at INR 23,000-23,200/MT ex-plant.

-- In Durgapur, Neo Metaliks has been raising offers and fresh offers for steel grade material reported at INR 24,200/MT ex-plant.

-- Electrosteels in Bokaro, Jharkhand is offering pig iron at around INR 23,500/MT ex-plant.

-- Stockist in Raipur are trading steel grade pig iron at around INR 23,800-24,000/MT & in Raigarh at INR 24,000-24,200/MT; both on FoR basis.

-- Offers for Granulated pig iron learned at around INR 23,000/MT ex-plant, Odisha.