Tata Metaliks reported Pig iron sales of 89,000 mt in the third quarter (Oct-Dec) of fiscal year 2021, up by 4pc from the same period prior year, and up by 3pc from previous quarter.
However, DI pipes sales dropped by 12pc to 43,000 mt in Q3 compared to same period in 2019, which is 20pc below the previous quarter figures.
The company claims Q3 sales to be the highest in last five years and recorded robust performance in pig iron business due to strong demand as foundries ramped-up operations to 80-90pc.
However, demand for DI pipes remains under pressure due to slowdown of executable projects and limited release of government funds towards water infrastructure projects. However, signs of recovery were visible with deliveries picking up by end of quarter with December 2020 recording the highest monthly DI pipes sales in the current fiscal year till now.
Sandeep Kumar, managing director of Tata Metaliks said, “The Company has delivered excellent results in its pig iron business despite over a month-long shutdown of one of its blast furnaces for capital repairs.” He added that Pig iron demand is expected to remain healthy in Q4 but the spreads may get impacted on account of the continuing hike in raw material prices.
Though DI Pipe business has been subdued this year, the outlook is quite encouraging for Q4 and beyond, as several new water projects are likely to be executed, he noted.
Tata Metaliks is a subsidiary of Tata Steel and has manufacturing facilities at Kharagpur, West Bengal in India. The plant produces 550,000mt of hot metal, of which 200,000mt is converted into DI pipes and the rest into Pig iron.