- Full booking at INR 37,600/t reflects stronger buying interest.
- Tight supply and improved finished demand support sentiment.
SAIL-Rourkela Steel Plant (RSP) conducted a pig iron auction on 20 August, with the entire offered quantity of 2,500 t booked at INR 37,600/t, up INR 50/t from the previous auction. This marks a clear improvement from the 14 August auction, when only 2,500 t of the 5,000 t offered was booked at INR 37,550/t, leaving the balance unsold.
Stronger buying interest amid supply constraints
The latest auction outcome reflects improved market participation, supported by tight raw material availability and better finished steel demand. Buyers appear more willing to secure material as limited availability has increased the urgency for procurement.
The full absorption of the offered quantity, despite a INR 50/t increase, indicates stronger acceptance of prevailing price levels. Improved downstream demand is also providing better support to pig iron consumption, while constrained supply is encouraging buyers to maintain procurement despite cautious market conditions.
Overall, the auction points to a shift from the subdued participation seen in the previous auction, with short supply and improved finished steel demand emerging as the key factors supporting buying interest.
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