India: SAIL RSP Pig Iron Auction Receives No Response Amid High Base Price

SAIL conducted pig iron auction today for 2,450 MT steel grade pig iron from its Rourkela Steel plant (eastern India). The auction did not manage to fetch response and almost all offered material remained unsold.

As per sources, the company had kept base price similar to last auction of INR 30,300/MT ex-plant. The reason behind the dull response in today's auction as quoted by sources was - high base price compared to offers from other manufacturers in neighboring markets. Notably, the prices in surrounding markets are low compared to RSP's auction base price.

In its previous auction held on 4th Jan'20 for 3,900 MT, the company managed to sell entire quantity at an average price of INR 30,200/MT ex-plant.

The latest offers in Odisha (eastern India) by Visa Steel is heard at INR 27,500-27,700/MT ex-plant, and its landed cost to within Rourkela based plants would be around INR 28,200/MT on FoR basis.

Further, steel grade pig iron offers by private mills in neighboring states are hovering at INR 27,300-27,700/MT ex- Durgapur/Jharkhand & INR 28,000-28,500/MT FoR Raipur/Raigarh.