Indian steel giant Tata Steel has announced that, with regard to the third quarter of fiscal year 2010-11 ended on December 31, on a group-wide basis the volume of steel products sold declined marginally compared to the second fiscal quarter, while it expects that net sales for the third quarter will be flat compared to the second quarter.
"Due to the increased raw material prices experienced in the third quarter, Tata Steel further expects its operating results for the third quarter to decline somewhat in comparison to the second quarter," Tata Steel said.
Tata Steel also reported that steel sales of its Indian operations increased by three percent year on year but dropped one percent quarter on quarter to 1,637,000 mt.
"The pricing environment in India in the third quarter was mixed, with prices for flat products being marginally lower compared to the second quarter, while prices for some long products increased," Tata Steel commented.
Tata Steel's European operations produced 3.7 million mt of liquid steel in the third fiscal quarter and recorded deliveries of 3.5 million mt, nearly eight percent lower compared to the corresponding period of last year and nearly one percent lower compared to the deliveries achieved in the second fiscal quarter.
The company said that while production and deliveries in the quarter were in line with the first fiscal half, the improvements in the financial performance of the first half could not be maintained as higher raw material prices and reduced apparent demand due to the seasonal slowdown, amongst other factors, adversely affected margins at Tata Steel's European operations.
Tata Steel's Southeast Asian operations produced 721,000 mt of steel in the third fiscal quarter, which was approximately one percent lower than the previous quarter, and recorded deliveries of 776,000 mt, nearly 14 percent lower compared to the corresponding period of last year and nearly two percent lower than the second fiscal quarter. The Southeast Asian operations were marginally affected by rising scrap prices and the delayed increase in the finished product prices.