Tata steel to gain from steel

NWE DELHI (Scrap Monster): The depreciation of the both currencies, Euro and GBP has been proven positive for Tata Steel. Even more, the increase in price of European steel and increase in the fixed local price, will would definitely expand the margins of local currency terms on a net basis. Even though there can be some negative impacts, all total the result would prove to be positive.

Even though the Chinese export prices have not moved, there have been an increase in the steel prices of European steel. The currency decline has been helpful to release the stress of Chinese pressure to a great extend, along with that season has also played its role. Taking in note the rippling effect of the mineral ban across companies is anticipated to end by the coming weeks.

The financial impact due to the ban could be seen sooner as the ban will be definitely short lived, which is only for about 2 months maximum. As the festival season in India is about to reach sooner the steel demand would most probably increase.