India: SAIL's Defective Steel Product Auction Receives Weak Response
...
Steel Authority of India Limited (SAIL), conducted auction from its central India based Bhilai Steel Plant (BSP) for defective steel products on 30 Oct'19.
Out of 53,581.04 MT steel put up for auction, only 7303.75 MT (13.6 %) material was sold and 46277.29 MT remained unsold. The bids for billet were assessed at INR 25,500/ MT ex-Bhilai, and in the last auction held on 07 Oct'19 bid price range for billet was of 25,450-25,600/MT ex-Bhilai.
According to market sources, the reason behind the dull response was a limited quantity of bloom getting booked which was the major quantity offered in the auction. Also, its bid prices were at INR 23840/MT whereas local domestic scrap end-cutting prices were hovering at INR 22600-22900/MT. Raipur FoR. So from a scrap consumption point of view, due to a sufficient price gap between the two, lots containing bloom fetched dull response.
In this auction entire quantity (of Merchant Mill Cutting, Billet, TMT Bar Defective, and Turning and Boring) got booked.
| PRODUCT | Sold | Unsold | Bid prices | Grand Total |
| BILLET DEF/REJ | 1,323 | - | 2,550 | 1,323 |
| BLOOM DEF/REJ | 50 | 34,317 | 23,840 | 34,367 |
| MERCHANT MILL CUTTING | 641 | - | 24,650-25,800 | 641 |
| MM COBBLE | 70 | 50 | 23,840 | 120 |
| MS TURNING | 100 | 235 | 13,200-17,550 | 335 |
| PLATE CUTTING | 68 | 1,773 | 25,100 | 1,841 |
| PM END SHEARING | 145 | 1,110 | 25,100 | 1,255 |
| RAILS CUTTING | - | 3,660 | - | 3,660 |
| RAILS DEF/REJ | 2,991 | 2,709 | 23,840 | 5,700 |
| SCRAP | - | 549 | - | 549 |
| SLAB DEF/ REJ | 1,093 | 1,389 | 23,840 | 2,482 |
| TMT BAR DEFECTIVE | 217 | - | 26,100-26,250 | 217 |
| TURNING AND BORING | 25 | - | 25,575 | 25 |
| WIRE ROD CUTTING | 380 | 25 | 25,440-25,490 | 405 |
| WIRE ROD DEF | 201 | 461 | 26,500-29,650 | 662 |
| Grand Total | 7,304 | 46,277 | - | 53,581 |
Quantity in MT
Bid Prices in INR/MT
Source: SteelMint Research
