In India the provisional production was 2.99mn tons provisional production compared to 4.73 in Q4FY20 and 4.50mn tons in Q1FY20. The production in June ended quarter comparatively to India was better in overseas markets. In Europe it was at 2.14mn tons than 2.64mn tons in Q4FY20 and 2.65mn tons in Q1FY20 and in South East Asia 0.39mn tons in Q1FY21 compared to 0.53mn tons in Q4FY20 and 0.57mn tons in Q1FY20.
The sales in India during the June ended quarter of FY21 were 2.92mn tons compared to 4.03mn tons in Q4FY20 and 3.96mn tons in Q1FY20. In Europe the sales were 1.94mn tons compared to 2.39mn tons in fourth quarter of FY20 and 2.26mn tons of first quarter of FY20. The sales in first quarter of this fiscal year were 0.42mn tons than 0.60mn tons in Q4FY20 and 0.62mn tons in Q1FY20.
Tata Steel Ltd is currently trading at Rs344.50 up by Rs10.3 or 3.08% from its previous closing of Rs334.20 on the BSE.
“In India, capacity utilization of our upstream facilities was adjusted to about 50% level in April while our downstream units were closed. With the phased opening of the economy, utilization levels have been ramped up gradually to around 80% level by end of June. Downstream facilities have also been restarted and are being ramped up progressively,” company said in its filing for exchanges on Thursday.
To counter the closure of the Indian markets in April and May, the company ramped up exports significantly by tapping new markets and improving the supply chain capability and will constitute around 50% of total sales volume in Q1FY21.
While April and May sales were lower, sales improved significantly in June as economic activity resumed in India. With the continued opening of the economy and the improvement in domestic demand, the proportion of domestic sales will increase from Q2.
The company said that urban markets are showing slow recovery, retail sales, especially in rural markets, are seeing an improvement in demand.
“During this quarter, we launched two new Coated Brands “GalvaRoS” and “Colornova” to meet the evolving needs of our customers. We initiated supplies to National Capital Region Transport Corporation Project, a landmark project. We have also received approval for API X60 & X70 grades for supplies to Oil & Gas segment.
The weak macroeconomic situation in Europe was further impacted by the Covid-19 outbreak. The company’s production levels in Europe were ramped down to around 70% utilization. Key steel consuming sectors such as automotive and construction sector continue to be under pressure though the demand for packaging material has been robust.