- Auction prices jump INR 3,000/t amid tight domestic pig iron availability
- Firmer semis, finished steel prices, better export realisations lend support
SAIL-Rourkela Steel Plant (RSP) conducted a pig iron auction on 18 September, with the entire scheduled quantity of 2,000 t booked at an average price of INR 41,900/t, up INR 3,140/t from the previous auction. The latest auction price marks a nearly three-year high.
In the previous auction held on 26 August, RSP had offered 4,000 t, with the entire quantity booked at an average price of INR 38,760/t, up INR 1,160/t from the 20 August auction. The previous auction had seen 2,500 t booked at INR 37,600/t.
Tight availability supports higher bids
According to market sources, the sharp rise in auction prices was primarily driven by tight domestic availability of pig iron. Limited supply has kept market offers firm, while primary producers have also raised prices amid stronger market conditions.
Firmer steel prices strengthen sentiment
The rise in semis and finished steel prices has provided additional support to pig iron prices. Regional prices have also moved higher, strengthening overall market sentiment and encouraging buyers to secure material despite elevated price levels.
Higher export realisations support producer pricing
Improved export realisations have further strengthened producer pricing. With regional market prices moving higher, SAIL-RSP raised its auction price to remain competitive with prevailing market levels. The full booking of the offered quantity indicates continued buying interest despite the sharp price increase.
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