Tata Metaliks Limited, one of the largest Foundry grade Pig iron manufacturers in India, has lowered offers for domestic buyers, after a period of five months.
Current offers stand at Rs 26,900/MT (ex works Kharagpur), down by Rs 500/MT w.e.f 1st Aug '13.
Previously, TML had pulled down its prices in the first week of February.
The most important factor which resulted in lowering of offers today, is the downtrend in Steel grade Pig iron prices across Indian market, which has impacted sales in Foundry grade material.
By the end of July, Steel grade Pig iron offers went down sharply to Rs 22,000-22,200/MT (ex works Durgapur), which are at 2 years and 7 month low.
Buyers are considering to add some percentage of Ferro Silicon to Steel grade material and utilize the same instead of buying Foundry grade material, available at higher prices.
The company is presently operating two blast furnaces at its Kharagpur manufacturing unit, which has a production capacity of 3,50,000 tons of Pig iron annually.
Other West Bengal based manufacturers such as Neo Metaliks Limited and Rashmi Metaliks Limited, are offering Foundry grade material at Rs 26,000/MT and Rs 25,500/MT respectively.
The former has quoted a discount offer of Rs 200/MT on purchases of 300-400 tons at a time.
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