- NMDC achieves higher realisation on raw material shortages, while RSP sees limited bookings
- Monsoon-led weak demand and buyer caution cap participation despite firm prices
NMDC’s Nagarnar Steel Plant auctioned 4,000 t of steel-grade pig iron on 22 July 2026, with the entire quantity sold at an average price of INR 37,300/t ex-works, up INR 800/t from INR 36,500/t in its previous auction held on 9 July, despite offering lower volumes. Market participants attributed the stronger realisation to shortages of sponge iron and scrap in the domestic market, coupled with a sharp rise in pellet prices of up to INR 350/t. The tight raw material scenario encouraged buyers to secure material through the auction despite the ongoing monsoon, resulting in aggressive bidding and full allocation.
In contrast, SAIL-Rourkela Steel Plant (RSP) witnessed subdued participation in its auction held on 22 July. The company offered 5,000 t of steel-grade pig iron but booked only 500 t at an average price of INR 38,050/t ex-works, up INR 400/t from INR 37,650/t in its previous auction on 10 July, where the entire 3,500 t was sold. Market participants said most traders had already lifted material from the previous RSP auction, limiting fresh buying interest. Monsoon-led weak demand, competition from private suppliers, and expectations of softer prices following SAIL-BSP’s auction on 21 July, where material was booked at around INR 38,000/t, prompted buyers to adopt a wait-and-watch approach, resulting in significantly lower bookings despite the higher auction price.
Overall, pig iron market sentiment remained mixed. While raw material tightness and firm input costs supported NMDC’s higher auction realisation, monsoon-led weak demand and cautious buying weighed on SAIL’s auctions. Reflecting the subdued market, SAIL-BSL’s auction for 7,000 t of pig iron opened at INR 36,435/t but received no bids, highlighting buyers’ reluctance to procure at higher price levels.
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