Rashtriya Ispat Nigam Ltd (RINL), the public sector steel producer operating in Visakhapatnam, has witnessed tepid response for sales of nut coke carried out in various auctions held during the month of Sep’19.
The company had cancelled the latest auction held on 25 Sep’19, envisaged for sale of 7950 MT nut coke via Rail mode offering 3 rakes of 2650 MT each. Bid price of INR 17,400/MT was fetched in the auction, but the auction was withheld as the company was looking for higher price realization.
It is pertaining to note that the earlier auction via rail mode held on 19 Sep’19 had seen sales of only 1 rake out of the 4 concluded at a bid price of INR 17,500/MT. While, no sales were concluded in the prior rail auction held on 13 Sep’19 amid lower price realization.
RINL’s road auction for sale of nut coke had indeed fetched better price realization than that of the Rail mode. In the auction held on 23 Sep’19, the company had concluded sales of 2200 MT nut coke at an average bid price of INR 18,300/MT. However, the remaining 3800 MT nut coke from the total offered quantity of 5000 MT was left unsold in the process.
Market participants have informed that the poor response observed in the auction was resulted as a consequence of subdued demand in the Ferro alloy market which is the prominent consumer of nut coke. Notably, prices of Silico Manganese had recently descended to a 2 year low, which had further dampened the demand of nut coke.
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