Vizag Steel's Pig iron Auction Receives Bid Up by INR 500/MT- Sources

Vizag Steel - a state-owned steel maker under the Ministry of Steel, conducted auction for around 5,000 MT basic grade pig iron today.

As per market participants report to SteelMint, in today's auction the company had kept base price at around INR 22,000/MT (USD 310) ex-plant. However the auction fetched bid higher by around INR 500/MT and the total offered quantity of 5,000 MT was booked at INR 22,500/MT (USD 317) ex-plant, Vizag, southern India. However, company officials were not available to confirm this report.

Sources believe that following surge in domestic steel (billet) price along with strengthening scrap offers globally has resulted in active participation on this Vizag Steel's pig iron auction.

As per SteelMint's assessment, Indian domestic steel & scrap prices surged by INR 1,000/MT (USD 14) in the last couple of weeks on account of improved demand.

The current offers of basic (steel) grade pig iron is hovering at INR 24,100-24,300/MT FoR Raipur - central India, INR 24,000-24,200/MT ex-Durgapur, INR 23,000-23,200/MT ex-Jajpur, Odisha & INR 23,500/MT ex-Jharkhand in Eastern India. The prices are ex-plant & excluding of 18% GST.