Tata Metaliks Increases Foundry Pig iron Prices for Feb Bookings

Tata Metaliks, India's major foundry grade pig iron manufacturer has raised its prices by INR 300/MT (USD 5) w.e.f Feb 2, 2018. Prior to this, in Jan 2018 the company had raised prices by around INR 600-800/MT (USD 9-13).

The latest offers are reported at INR 30,800/MT (USD 481) for high silicon, foundry grade pig iron against last month's offers of INR 30,500/MT (USD 476). The offers are excluding 18% GST & ex-plant, Kharagpur, East India.

The current price hike by Tata Metaliks has surprised stockiest based in North India-Ludhiana as they were expecting roll over in offers or even a possible reduction due to a slump in demand and healthy supply by other big producers like Vedanta Resources (Sesa Goa), Sona Alloys, Kirloskar Ferrous Industries & few other producers based in West Bengal & Jharkhand.

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

Prices fall in North India

The pig iron prices for both steel and foundry grade in North India have started to fall since couple of weeks over improved supply and average demand in the market.

SteelMint price assessment in current week for foundry grade stood at INR 32,500-33,000/MT against last week of INR 33,000-33,500/MT FoR Ludhiana. Similarly steel grade offers also decline to INR 29,000-29,500/MT against last week of INR 29,500-30,000/MT FoR Ludhiana & excluding 18% GST.

Tata Metaliks net profit rose more than 2 times to INR 40.35 crores

Tata Metaliks Ltd has reported financial results for the Q3 period ended December 31st, 2017. In which the company's net profit surge by more than 100% to INR 40.35 crores for the period ended Dec, 2017 as against INR 19.52 crores for the period ended Dec, 2016.

The report also shows net sales of INR 490 crores during the period of Oct-Dec, 2017 as compared to INR 318.08 crores during the same period of 2016.

In comparison with the 9 months of 2017 (Apr-Dec), the company has reported net sales of INR 1359.04 crores as compared to INR 996.02 crores in the same preceding of 2016 (Apr-Dec).

Further, the net profit has posted of INR 104.53 crores for the 9 months period ended Dec 2017 as compared to INR 75.66 crores for the same time frame of 2016.