India: TATA Metaliks Reduces Pig iron Price by INR 600-800/MT (USD 9-12)

TATA Metaliks Limited (TML) - one of the major foundry grade pig iron manufacturer in India has reduced its prices for Apr'19 deliveries.

The company has cut prices by INR 600/MT in foundry pig iron & INR 800/MT in low silicon pig iron, SteelMint learned from officials.

As per them, the latest offers for foundry pig iron is at INR 32,500/MT (USD 470) & Low Silicon (1-1.5%) at INR 29,000/MT (USD 420), against Mar'19 offers at INR 33,100/MT & INR 29,800/MT, respectively. The prices are ex-plant, Kharagpur, eastern India.

It seems the producer has slashed prices in line with constant drop in steel & pig iron prices as well since mid of Feb'19. This has forced producers to keep prices lower side to get better response.

TATA Metaliks recently has announced to expand its production capacity. Presently the company has hot metal installed capacity of about 5 lakh tone p.a., in which the production of DI pipe is about 2 lakh tone p.a. and about 3 lakh tone hot metal convert in to pig iron.

However in board meeting held on 27th Feb'19, the Board of Directors has approved capacity expansion of DI Pipe unit from 2 lakh tone p.a. to 4 lakh tone p.a. along with augmentation of the Mini Blast Furnace capacity and installation of a new 15 MW Power Plant.

For this expansion the company plans to invest about INR 555 crores and targeted to compete it by FY 2022.

In the current installed capacity of 5 lakh tone p.a. of hot metal the company has reported production utilisation of 100% for hot metal and 110% on pipe productions.

TATA Metaliks largely supplies pig iron in India's north-east regions including local market.