SAIL (Steel Authority of India Limited) conducted auction for around 6,250 MT steel grade pig iron today from its Rourkela Steel plant (eastern India). The auction received weak response despite reduction in base price of INR 500-550/MT (USD 7-8).
As per sources, in today’s auction the company had kept base price at around INR 24,830/MT (USD 360) which is down by INR 500-550/MT as against last auction conducted on 17th Jul’19 for 6,550 MT pig iron in which the base price was at INR 25,360/MT (USD 368); ex-plant, Rourkela.
The response was quite dull in today’s auction as around 15-16% material got booked on account of healthy availability of pig iron in merchant market either among traders & furnaces as well, as stated by participants as out of allotted quantity by RSP near to 900-1,000 MT (15-16%) material fetched bids, while remaining 5,200-5,300 MT material remained unsold.
SAIL is India’s largest steel producer in terms of capacity which is about 21 MnT per annum. Meanwhile in context to Pig iron NINL is the largest merchant producer of pig iron with an annual hot metal production capacity of about 1.1 MnT.
NINL’s fresh offers are due since 13th Jul’19 and company’s last offer was at INR 25,000-25,400/MT ex-plant, Cuttack, eastern India. The participants are hopeful that company may cut offers by more than INR 500/MT (USD 7) due to constant fall in steel & pig iron prices in Indian domestic market.
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