India: TATA Metaliks Cuts Pig Iron Offer by INR 600-800/MT (USD 8-13)

TATA Metaliks Limited (TML) - largest Foundry grade pig iron manufacturer in eastern India has reduced its pig iron offers by INR 600/MT for foundry grade & INR 800/MT for low silicon (1.1.5%) pig iron for remaining days of Oct'19, officials confirmed SteelMint.

Earlier the company had maintained offers firm for foundry grade pig iron since Sep'19 and the last reduction was noted during mid of Aug'19.

The latest offer by TATA Metaliks for Foundry pig iron is reported at INR 29,000/MT (USD 406), meanwhile offer for Low Silicon (1-1.5%) pig iron is around INR 24,700/MT (USD 348), these offers are down by INR 600/MT & INR 800/MT, respectively and the prices are ex-plant, Kharagpur, eastern India.

Participants believe that lessened furnace production & significant drop in billet & scrap prices globally are the key factors behind slump in prices by the producer.

In addition, another key factor is highlighted competitive offers by private pig iron producers which is hovering at INR 23,100-23,300/MT ex-Durgapur, INR 22,900-23,000/MT ex-Jharkhand & INR 22,700-22,900/MT ex-Jajpur (Odisha), for steel grade pig iron.

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.

Tata Metaliks 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.