Tata Metaliks, one of the largest Foundry grade Pig iron producers in India is to hold production from one of its Blast Furnace in Kharagpur (West Bengal) plant, from 03 to 17 of July on annual maintenance reasons.
The manufacturing unit at Kharagpur has two Blast Furnaces. The total annual installed Pig iron production capacity of Tata Metaliks stands at 6,50,000 MnT and it produces about 3,50,000 MnT presently, due to closure of Redi plant at Maharashtra which has one Blast Furnace.
Impact of close down of Blast Furnace for a fortnight:
The company is currently manufacturing 1,200 tons of Pig iron on a daily basis, out of which 900 tons is used for sales and the rest 300 tons is used for Pipe making.
Due to the closure, only 300 tons of the material on a daily basis, would be available then, to be offered for sales.
It is to look into demand from its long term customers mostly, in the beginning of July as the company would not have much of material to sell into Northern part of India, where it meets its buyers in big numbers.
Pig iron offers constant for last five months:
Though, it is being difficult for the manufacturer to hold on to current offers standing at Rs 27,400/MT (ex works), Tata Metaliks has maintained the price level from the first week of February.
The company is hopeful that Foundry grade Pig iron buying improves in the next month as foundries that were running at low capacities have started to raise their capacities. Also, labours are now available in good numbers, that were away due to the summer heat.
No plans to resume Basic grade Pig iron production:
Tata Metaliks has no plans to produce Basic grade Pig iron anytime soon as Indian domestic market is already flooded with the same.
Demand has not been good for both Basic and Foundry grade material in the month of June in Indian domestic market, on account of Pooled iron being offered by Tata Steel in large quantities and at quite low prices.
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