Rashtriya Ispat Nigam Ltd (RINL), the public sector steel producer operating in Visakhapatnam, has witnessed a further slump in Nut coke prices seen in its rail-mode of auction.
The rail auction concluded yesterday fetched a bid price of INR 15,300/MT, wherein both the two rakes offered for sale were booked in the auction. However, the underlying prices were down by INR 1200/MT from the previous road-sale.
Notably, RINL had set the starting price for Nut coke at INR 16,500/MT for the auction held on 26 Nov’19, but it was not enough to garner participation from the buyers. Eventually, a further price-cut in the auction held on Dec’19, had helped the company to sell-off its material.
Market participants informed that the Nut coke auction by rail mode generally accumulates lower bids, as the buyer has to purchase the whole lot of 2,650 MT offered in one rake. The bulk quantity is often not desired among its end-users.
In turn, Nut coke price in the road-sales was marked higher at INR 17,600/MT, wherein the minimum quantity which a buyer can procure is 100 MT. However, RINL had only managed to sale 3-4 lots out of the 50 lots (each lot carries 100 MT) offered in the auction held on 30 Nov’19, amid dull market conditions.
RINL’s upcoming auction is set to offer 5,300 MT nut coke via two rakes for sale in rail mode of auction which would be held on 11 Dec’19.
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