TATA Steel’s pig iron auction of 1,200 MT from its Bhushan Steel Plant received no participation due to higher base price, SteelMint learned from market sources.
The producer had offered 4 lots of steel grade pig iron of 300 MT each at a base price of INR 23,500/MT (USD 327) Ex-works Angul, Odisha. However there were no bids owing to high base price.
As per sources, the steel grade material is available at INR 23,000/MT by private producers in Odisha. Hence they opted out of this auction.
Prior to this, TATA Steel has conducted auction on 18th Oct’19 for 3,000 MT pig iron from Bhushan Steel Plant, in which the total allotted quantity was sold out with increase bid price by INR 350/MT to INR 22,750/MT (USD 317) Ex-works.
Meanwhile, steel grade offers by private mills being narrowed down by INR 100-200/MT today due to slump billet prices. The latest offers are hovering at INR 23,000/MT ex-Jajpur(Odisha), INR 23,800/MT ex-Bokaro (Jharkhand) & INR 24,100-23,400/MT ex-Durgapur, excluding of 18% GST.
Tata Steel has manufacturing units at Jamshedpur, Jharkhand and Kalinganagar, Odisha with production capacities of 10 MnT and 3 MnT, respectively. In FY19, the Company initiated a 5 MnT expansion project at Kalinganagar to enhance its cumulative capacity to 8 MnTPA. Also in FY19 Tata Steel acquired Bhushan Steel Limited.
Leave a Reply