State-owned Steel Authority of India Ltd. (SAIL) has posted strong sales of close to 85,000 t of (steel grade) pig iron at e-auctions in Feb’21 – considerably higher than around 58,000 t of sales recorded in Jan’21. While SAIL’s Bokaro Steel Plant achieved sales of over 25,000 t, Bhilai and Rourkela steel plants sold over 24,000 t each during the month.
In fact, Feb’21 marked the second-highest monthly pig iron sales by SAIL at periodic auctions in the current fiscal – just 20,000 t short of more than 106,000 t of sales recorded in Dec’20.
Active domestic as well as export demand amid improving sentiments and prices in the secondary steel market account for robust sales in Feb’21.
Bids rise at recent auctions
As per SteelMint reports, bids have shot up sharply at recent auctions. For instance, bids increased by INR 2,700/t at the Bhilai Steel Plant auction on 24 Feb’21, with 10,650 t of material getting booked at a weighted average price of INR 34,400/t. This is higher compared to the month-wise weighted average prices for Bhilai and Rourkela steel plants in Jan’21, which were assessed by SteelMint at INR 33,900/t and 33,650/t respectively.
Similarly, at auctions from Durgapur and Bokaro steel plants recently prices have moved north compared to previous auctions. SteelMint’s assessment for (steel grade) pig iron (ex-works Durgapur) stands at INR 35,600/t – INR 3,600/t higher vis-à-vis end-Jan’21.
Strong domestic demand amid uncertain supply coupled with robust overseas inquires has led to leading domestic foundry grade pig iron producers raising prices at a time when global pig iron prices stay firm, according to SteelMint reports. Domestic billet prices too have moved up by INR 700-1,000/t in West and South India, as the secondary steel market remains upbeat.
It could, therefore, be expected that pig iron sales at SAIL auctions would gain further momentum in the coming days.
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