- Raw material shortage, strong export realisations keep seller sentiment firm
- Higher bid levels limit buyer participation, results in low demand and lower bookings
SAIL-RSP’s pig iron auction held on 5 August 2026 reflected a firm market tone, although buying interest remained moderate. Against the 5,000 t offered, only 1,700 t was booked at a base price of INR 37,530/t, marking an increase of INR 280/t over the previous auction held on 27 July where 6,100 t were booked of total 10,500 t.
The price rise was primarily supported by tight raw material availability, which continued to keep production costs elevated, while healthy export realisations encouraged suppliers to maintain firm offers. Improved export opportunities also reduced pressure on domestic sales, strengthening mills’ pricing power. However, the marginal increase in bid prices made domestic buyers cautious, as many preferred to wait for clearer demand signals before committing to fresh purchases. As a result, booking volumes remained limited despite the positive price movement.
The auction indicated that while the supply side remains well supported by raw material constraints and export-linked demand, domestic consumption is yet to witness a significant recovery, keeping market sentiment firm but demand only moderate.
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