India: Buying Interest Retreats in SAIL's Pig iron Auction Amid High Base Prices

Steel Authority of India Ltd (SAIL) - state owned Indian steel maker conducted auction today (27th Dec'18) for sale of about 10,000 MT Steel grade Pig iron from its Rourkela Steel plant (RSP) in eastern India.

In this auction, most of the buyers didn't participated as base price was quite high than their expectations.

As per participants, RSP floated same base prices as in last auction at INR 27,950/MT. Although bidders expectations was not more than INR 27,500/MT looking at lower offers from other major suppliers in the state like - Mesco Steel and Neelachal Ispat (NINL) which are the major merchant suppliers of Steel grade Pig iron in India. NINL's domestic offers for steel grade Pig iron hovering at INR 27,500-27,900/MT and the price circular is expiring today.

Hence, buyers pulled back and only 600 MT pig iron was sold out in this auction at the base price of INR 27,950/MT by RSP and remaining of 9,400 MT (94%) material remained unsold.

Prior to this, RSP's tender held on 10th Dec'18 for sale of about 8,400 MT steel grade pig iron received good response. The base price of the tender was at INR 27,950/MT and the total quantity got sold out at INR 28,100-28,200//MT (Ex-plant).