Steel Authority of India Ltd (SAIL) – a govt. owned steel producer conducted auction for around 4,700 MT steel grade pig iron today from its Rourkela Steel plant (eastern India). The auction received good response as near to 64% material was sold. Base price remained stable compared to previous auction.
As per sources report, in today’s auction, the company has received bookings of around 3,000 MT (64%) pig iron out of offered quantity of 4,700 MT.
The base price in today’s auction reported firm at INR 23,050/MT in line with last auction which was held on 22nd Nov’19 for 7,900 MT in which around 3,000 MT was sold out at a base price of INR 23,050/MT (EXW-Rourkela, Odisha).
The response in this auction was quite better as there was no major change in offers through the private producers amidst fluctuating steel prices. Hence owing to stability, the producers secured raw material in RSP’s auction. The participants in this auction were mostly local ingot/billet manufacturers along with traders.
The current prices of steel grade pig iron in neighboring states are hovering at INR 22,600-22,800/MT ex-Jajpur(Odisha), INR 23,700-24,000/MT ex-Durgapur, INR 23,400-23,600/MT ex-Bokaro(Jharkhand), INR 23,800-24,000/MT FoR Raigarh & INR 24,000-24,100/MT FoR Raipur; excluding of GST.
SAIL is India’s largest steel producer in terms of capacity which is about 21 MnT per annum. Meanwhile in context to Pig iron NINL (Neelachal Ispat) is the largest merchant producer of pig iron with an annual hot metal production capacity of about 1.1 MnT.
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