Steel Authority of India Ltd (SAIL) – India’s govt. owned steel maker has received quite good response in today’s auction for 12,500-15,000 MT steel grade Pig iron from its Rourkela Steel plant (RSP) located in eastern India.
As per participants, entire quantity offered got booked at base price of INR 26,450-26,500/MT ex-plant. The base price in today’s auction was similar to the previous auction conducted on 03 Apr’19.
The better response in today’s auction attributes to higher offers by private mills and expected price hike by NINL. The private mills in eastern region have sharply raised prices by INR 500-1,000/MT in last one week and are currently offering steel grade material at INR 28,500-28,900/MT ex-Durgapur, INR 28,000-28,500/MT ex-Jharkhand & INR 26,800-27,000/MT ex-Jajpur (Odisha).
The participants are assuming price hike by NINL by around INR 500/MT. It is to be noted that fresh price circular is due from 11th Apr’19 and the last offer was at INR 26,250-26,650/MT ex-plant, Cuttack (Odisha) for Steel grade material.
RSP’s last auction was held on 3rd Apr’19 for 18,000 MT pig iron, in which only about 2,000 MT was sold out at the base price of INR 26,450/MT ex-plant, while remaining about 16,000 MT (89-90%) material was unsold.
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