- Weak billet demand weighs on auction results
- Alternative raw material shortages keep downside limited
In SAIL-RSP’s latest steel-grade pig iron auction, 6,100 tonnes (t) were booked out of the 10,500 t offered in its auction on 27 July 2026, with the booked quantity sold at the base price of INR 37,250/t ex-works. The auction witnessed moderate participation, with buyers showing selective interest amid cautious market conditions. The average realisation declined by INR 800/t compared to the previous auction, reflecting softer bidding sentiment despite continued supply-side constraints.
In the previous auction held on 10 July 2026, the company had sold only 500 t out of 5,000 t offered at an average price of INR 38,050/t ex-works. Although the latest auction recorded a significantly higher booked volume, the lower price indicates that buyers remained price-sensitive and were unwilling to chase higher offers amid weak downstream demand.
The auction outcome reflects the prevailing balance between subdued consumption and supply tightness. While weak billet demand during the monsoon restricted buyers’ willingness to bid aggressively, pig iron availability remains somewhat limited due to demand from buyers facing shortages of sponge iron and scrap. Healthy export realisations also continued to lend underlying support to pig iron prices, but cautious procurement by domestic secondary steelmakers capped bidding at the base price. As a result, higher booked volumes did not translate into stronger price realisation, highlighting the continued pressure from muted finished steel demand.
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