Tata Metaliks Limited (TML), one of the largest foundry grade Pig iron manufacturer in India, has increased domestic prices by Rs 600/MT, w.e.f August 30.
Current offers stand at Rs 27,500/MT (ex works Kharagpur), which was quoted at Rs 26,900/MT previous to this.
The company is currently operating two blast furnaces in Kharagpur (West Bengal) manufacturing unit.
Its total installed capacity for Pig iron production is 350,000 tons per annum.
TML's cost of manufacturing Pig iron has gone up by about Rs 3,000/MT as the free fall in Indian currency (Rupee), which is at 66 level against US dollar, has made procurement of coal quite expensive.
The hike in prices is purely cost push and not due to any big improvement in demand from domestic buyers.
With no other option left, Indian Pig iron makers had to raise offers, which would had otherwise resulted in closure of the plant.
It was only a month back i.e. on August 1, that TML had lowered Pig iron offers due to availability of cheaper steel grade Pig iron, after maintaining them for a long time period of five months.
For more details, contact
Seema Goenka
(seema@steelmint.com)
Leave a Reply