Rashtriya Ispat Nigam Ltd (RINL) has witnessed a fall in bid price for nut coke recorded in current month’s auction.
The auction held yesterday had received bids of INR 15,600/MT for nut coke sales, wherein both rakes offered via rail-mode were booked. The prices had significantly fallen from the levels seen in the previous term.
The demand for nut coke had seen resurgence lately, due to a short-term revival in ferro-alloy industry. Incidentally, RINL’s nut coke sales via rail mode had fetched bids of INT 17,400/MT in the auction held during Feb’20.
However, the moderate bids assessed in the recent auction were in line with the lower import offers reported at INR 16,000-16,500/MT in Vizag port.
Market participants have informed that most of the buyers planning to procure material from China had to cancel their forward booking due to concern regarding Corona outbreak, which pulled down import offers.
RINL’s Upcoming Auction:
RINL is set to offer 5,000 MT nut coke via road mode of auction on 23 Mar’20.
The previous road mode of auction held on 12 Mar’20 had fetched better price realization than rail-mode auction, where bids of INR 17,500/MT were received for booking of 1,200 MT material.
Apparently, the road mode offers quantity in smaller lots of 100 MT which is more cost efficient than rail-mode, where a buyer has to procure the entire lot of 2,650 MT contained in a rake.
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