India: Prices rise in SAIL-RSP’s pig iron auction with tight supplies supporting active participation

• Prices rise by INR 550/t compared to last RSP auction on 25 June
• Tight domestic availability offsets weak seasonal steel demand

SAIL-RSP sold the entire 3,500 t of steel-grade pig iron offered in its auction on 10 July 2026 at an average price of INR 37,650/t exw. The auction opened at INR 37,100/t and concluded at INR 38,200/t, reflecting steady bidding throughout the session, resulting in an average realisation of INR 550/t higher than the previous auction. The stronger outcome highlighted sustained buyer interest, as limited domestic pig iron availability continued to support procurement despite subdued downstream steel demand during the monsoon season.

This marked another firm auction for SAIL-RSP. In the previous auction held on 25 June 2026, the company had also sold the entire 3,500 t offered at an average price of INR 37,100/t exw. The latest auction recorded an INR 550/t increase in price while the offered volume remained unchanged, highlighting buyers’ willingness to pay higher prices to secure limited material.

The stronger auction outcome indicates that tight domestic availability of steel-grade pig iron continues to outweigh weak consumption fundamentals. Market participants noted that limited spot availability prompted consumers to actively participate in the auction despite sluggish finished steel demand. Buyers preferred securing material through the auction rather than relying on an increasingly tight spot market.

However, the broader Rourkela market remained slow to moderate. Monsoon-related disruptions continued to affect construction activity and interstate movement of finished steel, while procurement by secondary steelmakers remained strictly need-based. The sponge iron-to-billet conversion spread stood at around INR 12,900/t, offering limited incentive for higher billet production. Although spot market trading remained subdued, constrained pig iron availability continued to support auction prices, demonstrating that supply-side tightness remains the primary driver of the market.