India: Prices rise in NMDC’s pig iron auction but buyers remain cautious

• Only 1,300 t out of 5,000 t booked 
• Higher steel prices, costs support prices

In NMDC’s pig iron auction held on 1 October, only 1,300 t out of the scheduled 5,000 t was booked at a base price of INR 41,500/t ex-works, up INR 700/t from the previous auction held on 25 September. In the previous auction, 800 t out of 5,000 t was booked at an average price of INR 40,800/t ex-works. The higher base price indicates firmer seller price expectations amid relatively supportive finished steel prices and input costs.

Cautious buyer participation

Despite the higher price level, booking remained limited, indicating cautious participation from buyers. Limited immediate requirements appear to have restricted procurement interest, with consumers showing reluctance to commit to larger volumes at elevated prices. Buyers with immediate needs participated, while others preferred to wait for clearer price direction.

Wait-and-watch sentiment prevails

Higher finished steel prices and cost support may have encouraged some buyers to accept the elevated auction level. However, the limited quantity booked suggests that these factors were not sufficient to drive broader participation. Buyers appear to be closely monitoring physical market prices before taking fresh positions, keeping overall auction absorption subdued.