TATA Metaliks, known as India’s major foundry grade pig iron producer has further raised its prices by INR 500/MT (USD 8). Prior to this, the company had raised prices on 2nd Feb by INR 300/MT (USD 5) & in Jan’18 by around INR 600-800/MT (USD 9-13).
The latest offers are reported at INR 31,300/MT (USD 490) for high silicon, foundry grade pig iron against previous offers of INR 30,800/MT (USD 482) ex-plant, Kharagpur (East India) & excluding 18% GST.
According to the market participants, the company has raised prices in line with shortage of material in open market specifically for foundry grade material due to the limited supply by other private producers.
TATA Metaliks has pig iron production capacity of around 300,000 MT per annum 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.
TATA Metaliks net sales & profit moved up sharply during Q3 FY 2017, ended Dec’17. In which the company’s net profit surge by more than 100% to INR 40.35 crores as against INR 19.52 crores for the period ended Dec, 2016.
The company’s 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.
Prices rise in North India
With the price hike by TATA Metaliks, the prices in North India for both steel and foundry grade pig iron have also increased in the same proportion by INR 500/MT as landed cost from outside states increased. However, demand seems to sluggish in the market, SteelMint learnt from Ludhiana based traders.
The price assessment in current week for foundry grade stood at INR 32,800-33,000/MT & for steel grade offers at INR 28,800-29,300/MT FoR Ludhiana & excluding 18% GST.
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