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Steel Price Recovery Needed to Compensate High Raw Material Prices - Mr TV Narendran Tata Steel

Steel News - Published on Tue, 18 Jun 2019

Image Source: Business Standard
Mr TV Narendran, CEO & MD of Tata Steel in an interview with ETNOW while answering to “Would you also be worried about the surge in iron ore prices being witnessed both domestically and globally? Also the fact that it is not being accompanied by simultaneous rise in steel prices?” said “There has been a squeeze of spreads over the last few months because gold prices have stayed in the USD 200 range and iron ore prices have crossed USD 100 after a long time. So, the spreads have got squeezed. That is why the steel prices did not go up immediately when the iron ore prices went up but we have reached the stage where the costs are certainly putting pressure on the steel producers. It certainly hurts us more in Europe, in India we have our own iron ore mining but even in India we have been buying from the market because we consume more than we produce. So it does impact Tata Steel but it also acts as a push back for steel prices which have been a bit soft over the last couple of months.”

He said “We have reached levels where steel producers will not be able to manage any more softness in steel prices and will look forward to pushing up prices because the raw material costs have been staying at a pretty high level. That concern may be slightly less for Tata Steel given that we are fully integrated but it does impact us as in Europe and in Bhushan Steel for instance: where we buy a lot of iron ore.”

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Posted By : Ratan Singh on Tue, 18 Jun 2019
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