SAIL (Steel Authority of India Limited) conducted auction for around 5,300 MT steel grade pig iron today from its Rourkela Steel plant (eastern India). The auction received improved response on reduce base price by around INR 600/MT (USD 9).
As per sources, in today’s auction the company had kept base price at around INR 24,200/MT (USD 351) which is down by INR 600/MT as against last auction conducted on 22nd Jul’19 for 6,250 MT pig iron in which the base price was at INR 24,830/MT (USD 360); ex-plant, Rourkela.
The response was quite better in today’s auction as around 3,100 MT (58-59%) material got booked, while remaining 2,200 MT material remained unsold.
Participants believe that, the response was better in today’s RSP auction on account of recent shut down at NINL plant, which may support Indian pig iron prices and if there is any rise in steel prices, the private mills likely to take advantage and raise their offers in coming days.
NINL is one of the largest merchant pig iron producer in India, has an annual production of 0.8 MnT against rated capacity of 1 MnT. As per reports, NINL’s pig iron production in June’19 was at 43,685 MT against 47,050 MT in May’19 & 69,780 MT in June’18.
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