- CCT prices likely to soften amid weak monsoon demand and cautious buying
- Buyer resistance to higher prices keeps auction realizations under pressure
Steel Authority of India Ltd. (SAIL) has scheduled auctions for a total of 7,210 tonnes (t) of crude coal tar (CCT) in early August. IISCO Steel Plant will offer 4,260 t on 4 August, followed by Bokaro Steel Plant with 960 t on 5 August, and Bhilai Steel Plant with 1,990 t on 7 August.
SAIL Bhilai’s previous (CCT auction, conducted on 27 July for 1,095 tonnes, did not conclude successfully as the successful bidder failed to lift the awarded material within the stipulated timeframe, according to market sources. Sources further indicated that the auction carried a base price of INR 56,000/t, which market participants considered relatively high in view of prevailing demand conditions and softer buying interest from downstream distillers.
Separately, NMDC Nagarnar successfully concluded its crude coal tar auction on 23 July, selling the entire 1,000 t lot at a weighted average price of INR 55,000/t, indicating that buyers remain active only at relatively lower price levels.
Market participants expect crude coal tar (CCT) prices to soften in the upcoming auctions, weighed by seasonally weak monsoon demand, cautious need-based buying by downstream distillers, comfortable inventories, and adequate material availability. Resistance to higher reserve prices, coupled with subdued demand for coal tar derivatives, is likely to keep bidding sentiment weak, resulting in lower auction realizations in the near term.
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