Rashtriya Ispat Nigam Ltd (RINL), the public sector steel producer operating in Vizag, has witnessed a subdued sales of nut coke wherein a continuous fall in bid price was noted in the recently concluded auction.
The rail mode of auction held on 19 Dec’19 had seen sales of only one rake out of the 10 offered (each rake carrying 2,650 MT nut coke), which was booked at a bid price of INR 15,000/MT. Apparently, the bid price was down by INR 300/MT as compared with INR 15,3000/MT noted in RINL’s previous auction.
Market participants anticipated that the bid prices in the auction were following the leads of the imported nut coke prices which have also been accessed significantly lower at INR 14,000/MT.
A major end-user of nut coke commented that the demand for nut coke has drastically reduced among its major consumer- the Ferro alloy sector.
“Earlier, the bid price in RINL’s auction were seen at a levels of INR 22,000/MT, however, with closure of several Ferro-alloy industries, the number of nut coke sellers have exceeded the buyers thus creating a low demand for the material”, he added.
A renowned Ferro-alloy manufacturer also highlighted that they had stopped participating in RINL’s auction and were instead focusing on term contracts to book imported nut coke shipments in order to cater their requirement.
As far as, RINL was concerned, the company has not notified any latest update on the next auction for nut coke sales.
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