Steel Authority of India Ltd (SAIL) conducted auction for 3,000 MT steel grade pig iron today from its Rourkela Steel Plant (RSP). Today’s auction received bids higher by around INR 600/MT against last auction held on 09 May’20.
Company managed to sell the entire quantity in today’s auction at a weighted average price of INR 22,600/MT EXW-Rourkela, credible market sources reported to SteelMint.
Majority of quantity was booked at INR 22,300-22,800/MT EXW. However, lots amounting to a total of 300 MT was booked at INR 22,900-23,000/MT EXW-Rourkela.
Price drivers in today’s auction –
— Merchant pig iron producers have kept their offers on higher side owing to sharp increase in billet prices.
— In Raipur & Durgapur a couple of private pig iron producers have reported to suspend production due to technical glitches in their plants. This has resulted in supply tightness in the spot market.
— SteelMint’s assessment for steel grade pig iron price stands at INR 23,700-24,000/MT EXW-Durgapur, INR 23,200-400/MT EXW-Bokaro, INR 23,200-23,500/MT FoR Raipur, INR 23,100-23,300/MT FoR Raigarh & INR 27,000-27,000/MT FoR Ludhiana, excluding GST.
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