Tata Steel Production Gets Back to 100% Capacity

SEATTLE (Scrap Monster): Tata Steel announced that its production levels regained 100%, backed by resurgent domestic demand. Going forward, the company foresees increased demand from domestic market and lesser export volumes, compared with the initial quarter of the year.

According to T.V. Narendran, CEO and Managing Director, Tata Steel noted that the nationwide lockdown following the pandemic outbreak had impacted the steel industry, impacting supply chains and badly impacting steel production and demand. As a result, the company was forced to cut back its production to almost 50% of its capacity during the month of April. Also, the company had to rely more on export markets.

However, the unlocking of pandemic-related restrictions has led to increased domestic demand, thus enabling the company to ramp up production in a phased manner. Currently, the production is running at 100% and the company is less dependent on exports, Narendran added.

The favourable monsoon situation and revival in rural economy is likely to lead to notable revival in steel demand during the upcoming quarters as well. The recovery in automobile and construction sectors should augment domestic demand. The India business is likely to remain as one of the most profitable across its global business, said the company.

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