India: TATA Metaliks Roll Over Pig Iron Prices for May

TATA Metaliks Limited (TML) - the largest foundry grade pig iron manufacturer in eastern India has kept its prices unchanged for May'19 deliveries.

The latest offers by Tata Metaliks reported for foundry pig iron at INR 32,500/MT (USD 469) & Low Silicon (1-1.5%) pig iron at INR 29,900/MT (USD 431); are ex-plant, Kharagpur, eastern India.

It seems that, average demand in domestic market amid volatile steel prices has influenced producer to keep prices steady in line to stretch trade volume.

Pig Iron sales drop in FY19

Tata Metaliks Limited (TML) declared its yearly results for fiscal year 2019 (FY19), in which the company's pig iron sales slightly fell by 2.5% Y-o-Y. However on Q-o-Q the same had surged by 13% in Q4 FY19.

During FY19, the pig iron sales reported around 283,454 MT as against 290,902 MT in FY18; down by around 2.5% Y-o-Y.

In line quarterly premises, in Q4 FY19 the pig iron sales registered at about 69,574 MT, surged by 13% than the 61,503 in Q3 FY19. In line Q4 FY18 it was learned at 71,229 MT.

Profit After Tax (PAT) Rose in FY19

Tata Metaliks reported profit after tax (PAT) at 181.89 crore during FY19, which was about 159.18 crore in corresponding period last year.

Similarly, on quarterly basis it moved up to INR 64.35 crore during the quarter ended March 31, 2019 in comparison with 39.63 crore during Q3 FY19 & 54.65 crore in Q4 FY18.

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.