India: TATA Metaliks Keeps Pig Iron Prices Unchanged for Nov'19

TATA Metaliks Limited (TML) - largest Foundry grade pig iron manufacturer in eastern India has kept its pig iron offers unaltered for Nov'19 deliveries, officials reported to SteelMint.

The current offers by TATA Metaliks for Foundry pig iron is reported at INR 29,000/MT (USD 407) & for Low Silicon (1-1.5%) pig iron is around INR 24,700/MT (USD 348), the prices are ex-plant, Kharagpur, eastern India.

Participants mentioned that, due to recent fall in prices during mid Oct'19, the producer has rolled over prices as of now for Nov'19 deliveries. Notably during 15th Oct'19, the company had cut prices sharply by INR 600/MT for foundry grade & INR 800/MT for low silicon pig iron.

In addition, another key factor reported was rise in steel prices in Indian market, in which pig iron prices increased by INR 300-700/MT & steel prices by INR 500-1,000/MT of mid sized mills in last one week.

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.

Tata Metaliks Q2 Profit Drops 51%

Tata Metaliks, saw its decline in net profit to INR 23.39 crore during Q2 of FY20 ended Sep, 2019, half the level of a net profit of INR 47.53 crore company reported in the previous corresponding quarter (Q2) of FY19 on dull demand and lower price realisations in pig iron.

Inline with this, the company said, Pig Iron (PI) sales were higher by 7%, also sales of Ductile Iron (DI) Pipe rose by 5% Q-o-Q.