Steel Authority of India Ltd (SAIL) – a govt. owned steel producer conducted auction for around 7,900 MT steel grade pig iron today from its Rourkela Steel plant (eastern India). The auction received moderate response as only about 40% material was sold despite decline in base price.
As per sources report, in today’s auction, the company managed to sell only about 3,000 MT (40%) pig iron out of offered quantity of 7,900 MT.
As per sources, in today’s auction the company had kept base price at INR 23,050/MT (EXW- Rourkela) lower by INR 450/MT than the last auction on 18th Nov’19 for 6,100 MT steel grade pig iron, in which base price was at INR 23,500/MT EXW- Rourkela and the auction received no response.
The response in this auction was not much good, as the viability of offer is for local buyers only and it was not feasible for outside state based buyers to source RSP material as it attracts additional cost of more than INR 1,000/MT including logistics, loading & shortage etc.
The current prices of steel grade pig iron in neighboring states are hovering at INR 22,700-22,900/MT ex-Jajpur(Odisha), INR 24,000-24,300/MT ex-Durgapur, INR 23,600-23,700/MT ex-Bokaro(Jharkhand) & INR 24,000-24,200/MT FoR Raipur/Raigarh, 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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