India: Tata Metaliks & Vedanta Resources Increases Foundry Pig iron Prices

Tata Metaliks & Vedanta Resources, India's major foundry grade pig iron manufacturers have raised prices for rest of April 2018 deliveries owing to rise in domestic steel prices.

As per officials of Tata Metaliks, they have increased prices by INR 600/MT (USD 10) to INR 33,000/MT (USD 503) for high silicon, foundry grade pig iron which was last traded at INR 32,400/MT (USD 493); excluding 18% GST & ex-plant, Kharagpur, East India.

Significant rise in domestic steel prices coupled with strong demand and short domestic supply are being believed to be one of the key factors that have compelled producers to raise prices. SteelMint in its recently published article also reported about good demand for pig iron with Tata Metaliks in last offer prices.

According to trade participants, Tata Metaliks is under advance bookings. Recently about 2 rakes of Foundry grade pig iron have been booked for North India and one rake has been sold in Gujarat.

Tata Metaliks' annual pig iron production capacity is about 300,000 MT and the company largely sells material to North India - Punjab & Ludhiana which is known for foundry Industries. The company also supplies material in the local market.

Prices Spurt in North India

The pig iron prices for both steel and foundry grade in North India have moved up sharply in line with higher offer prices in the sourcing markets (Eastern India).

SteelMint price assessment in current week for foundry grade stood at INR 33,600-33,800/MT against last week of INR 32,800-33,200/MT FoR Ludhiana. Similarly steel grade offers also surged to INR 32,000-32,200/MT against last week of INR 31,100-31,500/MT FoR Ludhiana; excluding 18% GST.