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Tata Steel Reports 37% Dip in Steel Production in India in Apr-Jun Quarter

Steel News - Published on Fri, 10 Jul 2020

Image Source: Tata Steel
Tata Steel announced that “Overall 1QFY21 production and sales volumes were lower as the outbreak of COVID-19 and ensuing mobility restrictions severally impacted industrial activity and consumer sentiment across all geographies. In India, capacity utilization of our upstream facilities was adjusted to about 50% level in April while our downstream units were closed. With the phased opening of the economy, utilization levels have been ramped up gradually to around 80% level by end of June. Downstream facilities have also been restarted and are being ramped up progressively. To counter the closure of the Indian markets in April and May, exports were ramped up significantly by tapping new markets and improving the supply chain capability and will constitute around 50% of total sales volume in 1QFY21. While April and May sales were lower, sales improved significantly in June as economic activity resumed in India. With the continued opening of the economy and the improvement in domestic demand, the proportion of domestic sales will increase from 2Q.”

It said “While urban markets are showing slow recovery, retail sales, especially in rural markets, are seeing an improvement in demand. During this quarter, we launched two new Coated Brands GalvaRoS and Colornova to meet the evolving needs of our customers. We initiated supplies to National Capital Region Transport Corporation Project, a landmark project. We have also received approval for API X60 & X70 grades for supplies to Oil & Gas segment.”

Tata Steel added “While Europe did not impose a complete lockdown, the weak macroeconomic situation was further impacted by the COVID-19 outbreak. In line with this environment, our production levels in Europe were ramped down to around 70% utilization. Key steel consuming sectors such as automotive and construction sector continue to be under pressure though the demand for packaging material has been robust.”

Production 1
ItemsQ1'FY21Q4'FY20QoQQ1'FY20YoY
Tata Steel India22.994.73-37%4.50-34%
Tata Steel Europe2.142.64-19%2.65-19%
Tata Steel South East Asia0.390.53-26%0.57-32%
 

In million tonnes
1. Production Numbers: India - Crude Steel Production; Europe - Liquid Steel Production; South-East Asia - Saleable Steel Production
2. Figures for Tata Steel India includes Tata Steel Standalone, Tata Steel BSL (from May 18, 2018) and Tata Steel Long Products (from April 09, 2019) without eliminating inter-company transactions.

Sales
ItemsQ1'FY21Q4'FY20QoQQ1'FY20YoY
Tata Steel India22.924.03-28%3.96-26%
Tata Steel Europe1.942.39-19%2.26-14%
Tata Steel South East Asia0.420.60-30%0.62-32%
 

In million tonnes

Source :

Posted By : Yogender Pancholi on Fri, 10 Jul 2020
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