India: Goa based Pig Iron Producer finalizes an Export Deal 

India's largest low phosphorus foundry grade Pig iron manufacturer having its Pig iron division (PID) in the state of Goa, commenced in 1992, has closed an export deal.

The export deal has been finalized for 30,000 tonnes of Basic grade Pig iron with Daewoo International Corporation, at a price of USD 403.75/MT CFR Southeast Asia.

Shipment of the material will take place in the month of October, from Goa Port. This is the second export deal which has taken place between both the parties.  

Daewoo International Corporation, a subsidiary of POSCO, is a trading company located in Korea.

Domestic Pig Iron Market

The manufacturer is producing both Basic and Foundry grade Pig iron. The Pig iron plant is running at around 75% capacity presently.

Basic grade material is being used for export purpose. Whereas, Foundry grade material is sold in domestic market; current prices are standing at INR 27,500/MT (ex works).

Pig Iron Production Improved after Commissioning of 3rd Blast Furnace

In August 2012, the Goa based manufacturer had commissioned a new 450 cubic meter blast furnace and enhanced the Pig iron producing capacity from 0.25 to 0.625 MnT pa. 

Blast Furnace 1 & 2 have a working volume of 173 m3. The company has a 0.56 MnT pa metallurgical Coke plant and 0.8 MnT pa Sinter plant.

In Q1 FY 14, the company's Pig iron production went up by 179% to 0.11 MnT (109,536 tonnes) and sales improved by 180% to 0.13 MnT (126,579 tonnes) in comparison to Q1 FY 13.

In FY 13, the total Pig iron output saw a 24% Y-o-Y increase to 0.31 MnT (307,775 tonnes) and sales went up by 10% Y-o-Y to 0.27 MnT (275,119 tonnes).

Since 2009-10, Pig iron sales came down by 18.6% in 2012-13 due to increase in supply of Pig iron in Indian domestic market and depressed Steel demand, coupled with irregular supply and high prices of high grade Iron ore in Karnataka e-auction.   

Mining Bans impacted Iron ore availability for PID 

The company's Karnataka mine has received clearance from the Supreme Court, and is now awaiting final statutory clearances in order to restart mining.

Supreme Court is yet to take any decision regarding restart of mining operations in Goa.

The company is procuring 100% Iron ore lumps and fines from Karnataka e-auctions, to meet with the required quantity due to mining ban in the state of Karnataka since August 2011 and suspension of Goan Iron ore operations.