Tata Steel: European Steel Consumption to Return to Positive Levels From 2024

SEATTLE (Scrap Monster): Tata Steel MD and CEO, TV Narendran said that the company expects its Europe steel consumption to return to positive levels from next year.

According to him, European business proved to be a big challenge during the quarter ended 31^st March, 2023. However, things have started showing improvement. The company expects another challenging quarter, with better prospects expected from Q2.

The company’s Dutch business, which is considered as its strongest business in the European region, has been facing challenges, on account of rising gas and electricity prices. The blast furnace, which was shut down in April this year, is likely to be back into operation by August. The gas and electricity prices too are returning to normal levels as seen in Q2 and Q3, he added.

Narendran expects the UK business to witness longer-term challenge. Although it expects significant improvement, the Q1 EBITDA is still likely to be negative. The future of the UK assets is a big concern, as many of the assets are reaching their end of life within a couple of years.

The European markets are closely linked to developments in China as the country happens to be a major export market of steel products. Any improvement in Chinese market will have a positive impact on Europe. Although inflation is still a concern, the worst is behind for the company, as far as Europe is considered, the company noted.

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