- Auction signals strong buying interest amid limited domestic availability
- Auction prices rise INR 1,160/t compared to 20 Aug on soaring steel prices
SAIL-Rourkela Steel Plant (RSP) conducted a pig iron auction on 26 August, with the entire scheduled quantity of 4,000 t getting booked at an average price of INR 38,760/t, up INR 1,160/t from the previous auction held on 20 August.
The latest auction marks a significant strengthening in price levels, with the entire offered quantity absorbed. The previous auction saw 2,500 t booked at INR 37,600/t.
Tight domestic supply, rising steel prices drive bids
According to sources, the sharp rise in auction prices was primarily driven by two factors: a shortage of pig iron in the domestic market amid increased exports and a rise in steel prices.
Limited domestic availability has increased procurement urgency among buyers, while firmer steel prices have improved the overall price support for pig iron. The full booking of 4,000 t at a substantially higher price indicates that buyers remain willing to secure material despite elevated levels.
The auction outcome highlights a clear shift in market sentiment compared with the subdued participation seen earlier in August. With domestic supply remaining tight and steel prices moving higher, pig iron prices are likely to retain an upward bias in the near term, subject to buying activity and export-linked availability.
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