India: TATA Metaliks Keeps Pig Iron Price Unchanged for June

TATA Metaliks Limited (TML) - known as the largest foundry grade pig iron manufacturer in Eastern India has rolled over its prices for June'19 deliveries.

The latest offers by Tata Metaliks reported same as in May'19, for foundry pig iron at INR 32,500/MT (USD 470) & Low Silicon (1-1.5%) pig iron at INR 29,900/MT (USD 432); are ex-plant, Kharagpur, eastern India.

It seems that the prices are steady in line with lessened supply due to yearly maintenance shutdown in its Kharagpur (eastern India) plant.

As per sources, during mid of May'19, the company had announced that some parts of its manufacturing operations and its associated facilities in Kharagpur (eastern India) will undergo a planned shutdown for annual maintenance from 15 May 2019 and entire plant is expected to be back to normal operation on stream by 27 May'19.

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.

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 recent board meeting 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.