India: SAIL RSP Pig Iron Auction Receives Weak Response

Indian state owned steel maker Steel Authority of India Ltd (SAIL) had scheduled an auction today (8th October) for sale of about 1,900 MT steel grade pig iron from its Rourkela Steel plant (RSP).

As per participants, RSP received dull response in this auction and company managed to sell only 700 MT, out of the offered material at 1,900 MT. The material has been allotted at the base price of INR 30,000/MT, ex-plant.

It seems that falling prices of private producers amid anticipation of prices corrections by Neelachal Ispat (NINL) has resulted in limited participation of RSP's auction.

Prior to this, RSP's tender was held on 18th Sept for sale about 9,100 MT Steel grade Pig iron. About 47% (4,300 MT) quantity remained unsold in the auction & the auction was settled at around INR 30,700-31,000/MT ex-plant.

NINL in the last circular has offered steel grade pig iron at INR 30,200/MT with an bulk purchase discount of INR 100-400/MT. As per traders & stockiest they didn't booked healthy volumes amid slump in billet prices and buyers turned towards low cost substitutes. However few quantity was booked by end users.

There are anticipations that NINL may announce a price cut in fresh price circular which likely to be declared in couple of days, as per sources. However sharp decline may not be seen as the company received good response in the recent 30,000 MT pig iron export tender which was concluded at around USD 388-390/MT, FoB India.