India: SAIL's Pig iron Auction Observes Limited Participation

Steel Authority of India Ltd (SAIL) - state owned Indian steel maker conducted auction on 19th Jan'19 for sale of 5,300 MT Steel grade Pig iron from its Rourkela Steel plant (RSP) in eastern India.

As per sources, the company kept base prices unchanged against last auction. The base price for the latest auction reported at around INR 27,200/MT ex-plant.

As per participants, the company received limited participation in the latest auction held on 19th Jan'19, as only 1,500 MT pig iron have been sold out at the base prices of INR 27,200/MT, however remaining about 72% (3,800 MT) material remain unsold.

The reason behind the weak response in the latest auction stated was competitive offers prevailing through the private producers and stockiest as well.

The current offers through the private producers in Odisha are hovering at INR 26,900-27,000/MT ex-plant, which landed cost to neighbouring states cheaper then the RSP's material which cost would be high by about INR 300-500/MT.

The offers for Steel grade pig iron in Raipur & Raigarh, Central India through the private producers & stockiest are hovering at INR 27,900-28,000/MT FoR, while the landed cost of RSP material close to INR 28,400-28,500/MT, excluding GST.