Tata Steel: The Worst is Over for Europe and India Operations
Steel News | 2023-02-08 11:59:50
The high steel prices are likely to sustain in the short to medium term, he added.
By Paul Ploumis
SEATTLE (Scrap Monster): The worst is over for Europe and India operations of the company, said T.V. Narendran, Managing Director and Chief Executive Officer, Tata Steel. The response came after the company reporting subdued numbers during the December quarter.
According to him, the worse-than-expected results were mainly due to three reasons- pension adjustments, stock building in the Netherlands in anticipation of a maintenance shutdown and rising coal prices. The high steel prices are likely to sustain in the short to medium term, he added.
Commenting on the results, he noted that the company delivered steady growth in volumes despite the volatile operating environment. The domestic deliveries surged higher by 11% during the quarter. The quarterly crude steel production in India surpassed 5 million tons for the first time.
Tata Steel expects Q4 to be better than the third quarter, mainly on account of higher anticipated steel volumes, although amidst challenges. Moreover, gas and energy prices have started to decline. The steelmaker expects significant margin improvement in Europe as well as India during the upcoming quarter.
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