SAIL's Pig iron Auction Receives Good Response at Reduced Price

Indian state owned steel maker - Steel Authority of India Ltd (SAIL) pig iron auction received good response on reduced base prices by INR 500/MT (USD 7) as against company's last auction.

SAIL had scheduled an auction for sale about 6,000 MT steel grade pig iron from its Rourkela plant today on 19th Nov'18.

As per participants, RSP has received good response in this auction and company have been sold out almost total quantity out of the offered material. The company quoted base prices for the pig iron auction at about INR 28,700/MT and the tender fetched highest bid at around INR 28,900/MT (ex-plant), participants reported.

Prior to this, RSP's tender was held on 12th November which received dull response even though the company had cut base prices and as per reports the company was able to sell only 300 MT out of the allotted quantity of 5,200 MT at the base price of INR 29,400/MT ex-plant. Thus compared to previous auction, bids have come down by INR 500/MT in today's auction.

As per SteelMint assessment the latest offers for Steel grade Pig iron is hovering at INR 29,300-29,500/MT ex-Durgapur at West Bengal, INR 29,000-29,500/MT ex-Jharkhand, INR 30,100-30,300/MT ex-Raipur & for Vizag/Hyderabad are reported INR 30,500-31,000/MT.

SAIL is India's largest steel producer in terms of capacity with an annual installed capacity of about 21 MnT followed by JSW Steel at 18 MnT, as on financial year 2017-2018.