India: TATA Metaliks Reduce Pig Iron Price by INR 800/MT (USD 12)

TATA Metaliks Limited (TML) - known as the largest foundry grade pig iron manufacturer in eastern India has reduced foundry pig iron prices by INR 800/MT (USD 12) on 25th Jun'19.

The latest offers by Tata Metaliks for foundry pig iron is reported at INR 31,700/MT (USD 457), which was earlier traded at INR 32,500/MT (USD 432), ex-plant, Kharagpur, eastern India.

"The company has cut prices on account of significant drop in domestic steel prices and pig iron prices as well through the private producers" sources closed with the producer stated.

As per SteelMint assessment, It should be noted that, local steel (Billet) prices in India fell close to INR 2,000-3,000/MT (USD 28-43) & Pig iron by INR 1,000-1,500/MT (USD 14-21) in Jun'19. Hence pressure being mount on TATA to cut prices in line to trade better volume.

Tata Metaliks pig iron sales slightly fell by 2.5% to 283,454 MT in FY19 as against 290,902 MT in FY18. However on Q-o-Q the same had surged by 13% to 69,574 MT in Q4 FY19, than the 61,503 in Q3 FY19.

A subsidiary of domestic steel giant Tata Steel, Tata Metaliks, has a manufacturing plant at Kharagpur, West Bengal, where pig iron and ductile iron pipes are produced.

In recent board meeting conducted during 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. With this expansion, the product mix of DI Pipes would be enhanced up to 1200 mm diameter pipe.