Steel Authority of India Ltd (SAIL), Indian state owned steel maker had floated an auction today (6th Aug) to sale about 3,600 MT Steel grade Pig iron from its Rourkela Steel Plant (RSP). As per participants, the auction got concluded with increase bid prices by about INR 300-400/MT (USD 4-6).
As per participants, RSP has received good response on this tender as the allotted quantity is fully sold out with higher bid prices. The base price for the tender was quoted by RSP at INR 27,850/MT and the auction got settled at INR 28,200-28,300/MT, ex-plant.
The buyers participated aggressively in this tender as landed cost of pig iron from NINL is more than the RSP’s pig iron cost. The landed cost of NINL pig iron is near about INR 28,500-28,700/MT FOR Rourkela, while RSP’s pig iron landed cost is at around INR 28,300-28,400/MT; excluding GST.
Prior to this, RSP’s last tender was held during 2nd week of July for about 12,500 MT and the company had sold out the whole quantity at around INR 27,700-27,800/MT, ex-plant.
SAIL’s another plant based in West Bengal namely IISCO (Indian Iron & Steel Company) heard to have offered Steel grade Pig iron at around INR 28,000-28,200/MT, ex-plant and as per trade sources, the local furnaces in Durgapur have recently bought the material.
Steel-grade Pig iron Prices through Private Producers as on 6th Jul’18
| Particular/Delivery | Prices | Min | Max | 1W | 1M |
| Ex-Bokaro | 28,800 | 28,500 | 29,000 | 28,800 | 28,800 |
| Ex-Cuttack | 27,700 | 27,500 | 27,900 | 27,700 | 27,700 |
| Ex-Durgapur | 28,900 | 28,700 | 29,000 | 29,300 | 29,200 |
| Ex-Giridih | 29,000 | 28,800 | 29,200 | 28,800 | 28,800 |
| Ex-Hyderabad | 28,800 | 28,700 | 29,000 | 29,800 | NA |
| Ex-Jharsuguda | 27,700 | 27,600 | 27,800 | 27,700 | 27,700 |
| Ex-Ludhiana | 31,500 | 31,300 | 31,700 | 32,300 | 31,300 |
| Ex-Raigarh | 29,000 | 28,900 | 29,100 | 29,000 | 29,100 |
| Ex-Raipur | 29,100 | 29,000 | 29,200 | 29,100 | 29,100 |
| Ex-Vizag | 28,300 | 28,100 | 28,500 | 29,300 | 29,300 |
Prices in INR/MT, excluding 18% GST
Source: SteelMint Research
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