In the second quarter of the financial year 2019-20, Indian steelmaker Tata Steel produced 4.5 million mt of crude steel, up by 4.6 percent year on year, while the company’s finished steel sales decreased by 4.2 percent to 4.14 million mt compared to the same period in the previous financial year, due to weaker economic activities and investment sentiment and slackened demand in India, with the impacts of the monsoon season. “However, as the monsoon season comes to an end and the festive season starts, an improvement in sentiment is expected to trigger a pick-up in consumption and thus, steel demand,” according to the company statement.
Meanwhile, in the given period, Tata Steel’s crude steel production at its European facilities increased by 1.6 percent to 2.46 million mt, primarily due to adjustments related to weaker market conditions, planned summer shutdowns and unplanned outages, while finished steel sales from its European facilities totaled 2.28 million mt, up 0.4 percent, both on year-on-year basis.
Meanwhile, in the first half of the financial year 2019-20, Tata Steel’s crude steel output totaled 9 million mt, up 13.2 percent, while its finished steel sales totaled 8.1 million mt, up 5.7 percent, both year on year.
In the given period, Tata Steel’s crude steel production at its European facilities totaled 5.11 million mt, down by 2.5 percent, while its finished steel sales totaled 4.54 million mt, declining by 3.8 percent, both year on year.
Commenting on the results, “Apparent steel demand remained weak, weighing on steel prices across geographies. Though the regional spot steel spreads have begun improving since mid-July from the lows of 1Q FY20 with softening coking coal and iron ore prices, the meaningful benefit will flow through in the next few quarters. In Europe, the steel industry continued to face significant headwinds amidst lower demand conditions due to Brexit uncertainty and trade conflicts,” Tata Steel said.