Iron ore passes through screening machinery at Fortescue Metals Group Ltd.’s Solomon Hub mining operations in the Pilbara region, Australia. (Photographer: Brendon Thorne/Bloomberg)

Tata Metaliks Focussed On Cost Control Amid Rising Input Prices

Cost control will remain a focus area for Tata Metaliks Ltd. with rising raw material prices and the Supreme Court’s cancellation of iron ore mining leases in Goa.

Though the ban on cheap iron ore does not hit steelmakers directly, iron ore prices in exports market do have significant bearing domestic prices at least in the long term, Sandeep Kumar, managing director at Tata Metaliks told BloombergQuint in an interview.

Iron ore prices have seen a significant rise in the domestic market with 15 percent of iron ore production capacity shut in Odisha after a Supreme Court order on illegal mining in the state. Coal and coke prices which rallied in the recent past are stabilising.

Coke prices have a bigger bearing on Tata Metaliks as it is a key raw material for production of foundry grade of ductile and pig iron. The company, which meets 40 percent of its coke requirements internally, has now signed long term agreements with Tata Steel Ltd. for more than 80 percent of its requirement.