Tata Steel Consolidated Steel Output Soared 9%

SEATTLE (Scrap Monster): Tata Steel reported 9.18% surge in consolidated steel production in the first quarter of the current fiscal. The production totaled 7.61 million tonnes (MT), as compared with 6.97 MT during the year-ago period.

According to company press release, Tata Steel India produced 4.37 MT of steel during April-June ’19. This compares with the production of 3.64 MT in the same quarter a year before. The European production witnessed marginal decline from 2.81 MT in April-June ’18 to 2.66 MT in the same quarter this fiscal year. Tata Steel South East Asia recorded marginal jump in production from 0.52 MT to 0.58 MT over the previous year.

The company’s consolidated sales during the quarter stood at 6.75 MT, slightly higher from 6.39 MT in the same quarterly period a year ago. Tata Steel India sales totaled 3.87 MT, as against 3.34 MT a year before. The European sales totaled 2.27MT, down marginally from 2.45 MT a year before. The company sold 0.61 MT of steel in South East Asia, as compared with the sales of 0.60 MT in the corresponding quarter previous fiscal.

Tata Steel cited weakness in global business confidence amidst economic weakness and uncertainty surrounding the ongoing trade conflict between the U.S and China. This has led to notable decline in steel prices across several geographies in 1QFY20. Meantime, iron ore prices surged higher, on account of supply disruptions and higher coking coal costs.

Tata Steel expects stronger business performance in second half of the current financial year, mainly backed by anticipated improvement in global sentiments.