SAIL Reduces Base Price for Pig Iron Auction by INR 500/MT; 80% Material Booked

Steel Authority of India Ltd (SAIL) - a govt. owned steel producer conducted auction for around 4,100 MT steel grade pig iron today from its Rourkela Steel plant (eastern India). The auction received good response with around 80% of the material offered got booked at base price.

As per sources, in today's auction the company has reduced base price by INR 500/MT to INR 23,500/MT (USD 330) ex-plant, Rourkela. Meanwhile with price cut, buyers have turned active as close to 3,300 MT (80%) material got booked by local traders & mill owners as well at the base price.

Prior to this, the company had conducted auction on 6th Nov'19 for around 2,800 MT steel grade pig iron, in which near to 700 MT (25%) pig iron was booked at base price of INR 24,000/MT ex-plant, Rourkela. However remaining about 2,100 MT (75%) material remained unsold.

Participants believe that, the response was quite good in today's auction than the earlier on account of reduced base price as offers seems similar now of RSP comparing with neighboring markets.

Also the rising billet prices in domestic market are being considered one of the major factor behind active participation in RSP auction.

Steel grade pig iron offers in neighboring markets are mentioned below

-- Mesco Steel in Jajpur, Odisha is offering pig iron at INR 23,200/MT as against last week deals at INR 23,000/MT; ex-plant.

-- In Durgapur, Neo Metaliks has raised offers by INR 200-300/MT and fresh offers for steel grade material reported at INR 24,200-24,300/MT ex-plant.

-- As per market sources, Kajaria Iron in Durgapur has also increased price by INR 300/MT to INR 24,500/MT as against last deals at INR 24,200/MT ex-plant.

-- Electrosteels in Bokaro, Jharkhand is planing to increase prices after a healthy bookings at INR 23,500/MT ex-plant.

-- Stockist in Raipur & Raigarh are trading steel grade pig iron at around INR 24,200 on FoR basis.

-- Pig iron offers in Northern India surge and registered at INR 26,200-26,500/MT for steel grade & INR 29,200-29,500/MT for Foundry grade, FoR Ludhiana; excluding 18% GST.