India: SAIL Pig Iron Auction Receives Limited Participation

SAIL (Steel Authority of India Limited) conducted auction for around 6,550 MT steel grade pig iron today from its Rourkela Steel plant (eastern India). The auction received weak response as only 17% material have been sold out amid unchanged base price.

As per sources, in today's auction the company had kept base price at around INR 25,360/MT which is more or less firm as against last auction conducted on 10th Jul'19 for 3,500 MT pig iron in which the base price was at INR 25,400/MT; ex-plant, Rourkela.

Amid roll over in base price today, there was limited participation with RSP as near to 1,100 MT (17%) material fetched bids, while remaining of 5,400-5,500 MT material remained unsold.

It seems that, the declining offers of the private pig iron producers resulted in limited response in RSP's pig iron auction.

As per assessment, steel grade pig iron prices have come down by INR 300-500/MT through the private mills in eastern India following constant drop in steel prices.

Offers through the mills are as follow-

-- Mesco Steels in Jajpur, Odisha has reported steel grade offers at INR 24,600-24,800/MT ex-plant.

-- Jharkhand based manufacturers heard to have dealing at INR 25,000-25,300/MT as against last week at near to INR 25,500/MT ex-plant.

-- Neo Metaliks in Durgapur reported steel grade pig iron offers at INR 25,600-25,800/MT and no fresh deals as buyers looking at less than of INR 25,500/MT; ex-plant.

-- Jindal Steel is offering steel grade pig iron at INR 25,500/MT ex-Raigarh & through the stockiest offers learned at INR 25,800/MT FoR Raigarh & Raipur, (delivered) basis.

-- Tata Metaliks, recent has lowered Foundry grade pig iron offers by INR 700/MT to INR 31,000/MT ex-Kharagpur, eastern India.