E-auction of slag fetches higher price

ROURKELA: Less than a year ago, Blast Furnace (BF) granulated slag of Rourkela Steel Plant (RSP) was getting disposed of at throwaway prices with a local cement major being the largest beneficiary. But with the RSP virtually forced into conducting e-auction, the BF granulated slag sales both through rail and road transportation are fetching three-time higher prices and the same old buyers are now paying high.

Sources said in the first week of March, the RSP conducted e-auction for road sale of multiple lots of BF granulated slag weighing five lakh tonnes. Incidentally, the same local cement major and others secured multiple lots totalling three lakh tonnes for Rs 700 to Rs 1,150 per tonne with average price of about Rs 1,000 per tonne.Till March 2017, the RSP through direct open sale was disposing of BF granulated slag by rail at fixed price of Rs 275 per tonne, while by road the local cement manufacturer was procuring bulk quantities at Rs 300 per tonne along with provisions of special discounts.

However, the RSP had landed into a controversy when Union Tribal Affairs Minister Jual Oram, in a strongly worded letter to Union Steel and Mines Minister Choudhury Birender Singh on March 24, 2017, had alleged corruption in disposal of BF granulated slag sale. The internal Vigilance of RSP too was critical and RSP then had claimed it lacked rail transport logistics.   

On the backfoot, RSP on April 29, 2017 had resorted to e-auction for sale of 3.24 lakh tonne and the prices went up surprisingly fetching Rs 1,065 to Rs 1,105 per tonne for different lots. Yet, price for road sale varied between Rs 350 and  Rs 420 per tonne with the cartel of the cement major and a few small local cement units reportedly keeping prices low.  

Sources said during November 2017 when e-auction for road sale was held for 15 lots comprising 1,93,800 tonnes, the prices had gone up between Rs 520 and  Rs 750 per tonne with average price of Rs 600. Still, the prices were less compared to sale by rail as in e-auction in December for seven lots weighing 1.6 lakh tonne by rail fetched an average of Rs 1,125 per tonne.

In the latest e-auction for road sale, the prices matched sale by rail with the JSW Cement quoting Rs 800 to Rs 1,150 per tonne forcing others to follow suit. They also claimed RSP is still suffering as in road transport measurement is not done in tonnage, but in Cubic Metre (cbm) which is equivalent to 1.5 tonne.