SAIL's Pig iron Auction Receives Good Response, Entire Quantity Sold

Steel Authority of India Ltd (SAIL) - state owned Indian steel maker conducted auction for Steel grade Pig iron today for sale of about 8,400 MT Pig iron from its Rourkela Steel plant (RSP) based in eastern India.

As per participants, RSP has received overwhelming response in this auction as total offered quantity have been sold out with an increase in bid prices by around INR 200/MT.

The company had quoted base prices for the pig iron auction at INR 27,950/MT and the majority of material fetched bids at around INR 28,100-28,200/MT (ex-plant), as per participants.

As per sources, major quantity has been purchased through the traders as stock is limited with them following delay in issue of fresh price circular through NINL. NINL's fresh offers are due since 8th Dec'18 and the last offers was at INR 28,500/MT with an bulk purchase discount of INR 400/MT on above of 8,000 MT, ex-plant, Cuttack, Odisha.

Prior to this, RSP's pig iron tender was held on 1st Dec'18 in which the response was quite dull as there was not a single buyer for the 8,400 MT pig iron at the base price of INR 28,400/MT ex-plant.

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 19.5 MnT (after recent acquisition of Monnet Ispat).