Rashtriya Ispat Nigam Ltd (RINL), the public sector steel producer operating in Visakhapatnam, has witnessed a price cut of INR 700/MT in bids received for nut coke sales.
The company had sold 90% of the total quantity of 5,000 MT offered in the road-mode of auction ( Nut Coke having fixed carbon 82% and volatile matter of 1.5%), held on 5 Nov’19. However, the entire volume was unvaryingly sold at a bid price of INR 17,600/MT, which was comparatively lower than that fetched in the previous terms.
Notably, RINL’s nut coke auction via road sales had garnered bid price of INR 18,300/MT in the previous month.
Bid price seen in RINL’s auction via rail-mode had seen a further decline of INR 600/MT, wherein one rake carrying a quantity of 2,750 MT was booked at INR 17,000/MT. The auction for sales of 2 rakes (carrying 2,750 MT nut coke in each rake) was held on 8 Nov’19.
Market participants have informed that the poor response in the auction was consequence of the subdued demand in Ferro Alloy market which is the prominent consumer of nut coke.
Jindal Stainless and Berry Alloys were the largest recipients in the road auction, with each procuring 1,000 MT of nut coke. Sarda Metals and Alloy (500 MT), Anjaney Ferro Alloys (400 MT) and Sri Raghvendra Ferro Alloys (400 MT) were among the other noticeable buyers in the auction.
Sampath Vinayak Steel was the sole recipient in road-mode of sales, which had eventually acquired the material at lower price amid bulk purchase.
RINL’s competitor Nilanchal Ispat (NINL) envisaged in sales of superior grade of nut coke (having fixed carbon 85% and volatile matter of 1%), had also offered a discount for bulk sales in its price revision for Oct’19 booking.
NINL had affixed price of INR 20,020/MT for sales up to 2,000 MT nut coke, while for quantity above 2,000 MT the cost was reduced to INR 19,800/MT. The company has not revised nut coke prices for Nov’19.
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