Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Tata Metaliks reported pig iron sales of 89,000mt in the first quarter (April-June) of FY 2022, up by 178pc from the prior-year period, and 11pc from the previous quarter. 


Ductile Iron (DI) pipes sales was up by 85pc to 50,000mt in Q1 as compared to prior-year period but contracted by 33pc as compared to Q4 FY2021. 


The company claims Q1 sales of pig iron was hampered by the second wave of COVID-19 with the foundry cluster in the domestic market operating at around 30-40pc capacity. Pig iron deliveries were at 89,000mt, mainly catering to the export demand. 


Demand and production of DI pipes were disrupted as the government imposed stringent lockdown measures to curb the COVID-19 spread leading to production cuts. 


Indian iron ore prices surged by almost 45-50pc in Q1 FY22 compared to the previous quarter as supplies tightened in Odisha from merchant mines. 


Domestic coke prices in Eastern India dropped by 8pc from the previous quarter but started to gain from mid-June owing to an increase in international prices. 


The company’s EBIDTA surged by 1,295pc to Rs1,569.9mn in Q1 FY22 compared to prior-year quarter, and by 8pc from the previous quarter.


Demand for DI pipes continues to remain strong as a result of a significant increase in the annual budget for water infrastructure. 


The subsidiary of Tata Steel produces 550,000mt of hot metal, of which 200,000mt is converted into DI pipes and the rest into pig iron.

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