India: Entire Quantity Booked in SAIL Pig Iron Auction

The auction fetched bids higher by INR 50-100/MT against set base price.

SAIL (Steel Authority of India Limited) conducted auction for around 2,500 MT steel grade pig iron today from its Rourkela Steel plant (eastern India). The auction received quite good response as entire quantity offered was sold out. Base price remained unchanged against last auction.

As per sources, in today's auction the company had kept base price similar to last auction at INR 24,200/MT (USD 351), while the material has been sold out with an increase bids by INR 50-100/MT over the base price. The bids fetched were in the range of INR 24,250-24,300/MT; ex-plant, Rourkela.

Participants believe recent halt in operations of NINL plant, is one of the key factor behind better response in RSP's auction as market expects pig iron prices to find support in coming days when the NINL's earlier bookings get completed.

NINL is the largest pig iron producer in India and supply material across regions. The company has an annual production of 0.8 MnT against rated capacity of 1 MnT. As per reports, NINL's pig iron production in June'19 was at 43,685 MT against 47,050 MT in May'19 & 69,780 MT in June'18.

SteelMint in conversation with stockiest learned that earlier booked material with NINL which is almost delivered to them and for fresh bookings they are eyeing bulk supplier. This seems to be result of short supply of pig iron in merchant market and may directly impact prices in near term.