Central India: Low SAIL-BSP allocation at auctions triggers pig iron shortage

With falling pig iron supplies at SAIL’s Bhilai Steel Plant (BSP) auctions, shortage of pig iron has erupted in central India, mainly Raipur and Raigarh, as per SteelMint reports. Hence, offers have moved up by INR 500-800/t in the last couple of days. Allotted quantities at the recent BSP auction held on 10 Jul shrunk to 2,500 t as against 8,650 t on 10 Jun and 10,400 t at the 31 May auction. Shortage with resellers, therefore, is resulting in prices firming up despite the ongoing 20-40% production curbs by furnaces, SteelMint notes. Current offers are at INR 37,800/t in Raipur and INR 37,500/t in Raigarh on FoR basis.