[Ferro-Alloys.com] Tata Steel India reported sales of 2.92 million tonne of steel in Q1 FY21 against sales of 3.96 mt in Q1FY 20.
Production of steel went down to 2.99 mt in the quarter under review compared to 4.5 mt in Q1FY20, an official statement said.
Tata Steel Europe reported sales of 1.94 mt in Q1FY21 against 2.26 mt in Q1FY20 while production during the quarter was at 2.14 mt compared to 2.65 mt in Q1FY20. Tata Steel said it has sustained production levels of fifty percent and more than that subsequently despite the unprecedented situation arising out of the Covid outbreak.
"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," the statement said. Downstream facilities have also been restarted and are being ramped up progressively, it added.
To counter the closure of the Indian markets in April and May, exports were ramped up significantly by tapping new markets and improving the supply chain capability and will constitute around 50% of total sales volume in 1QFY21
While sales in April and May were lower, it 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.
While urban markets are showing slow recovery, retail sales, especially in rural markets, are seeing an improvement in demand. During the quarter, TSL launched two new Coated Brands GalvaRoS and Colornova to meet evolving needs of its customers.
While Europe did not impose a complete lockdown, the weak macroeconomic situation was further impacted by the COVID-19 outbreak, tge statement said. "In line with this environment, our 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," it added.
Tata Steel said it is closely monitoring the situation and taking appropriate actions as per the directions issued by the regulatory authorities from time to time keeping in view the health and safety of its employees and the community and the interests of its customers and other stakeholders.
Source: S&G Platts Global
Copyright © 2013 Ferro-Alloys.Com. All Rights Reserved. Without permission, any unit and individual shall not copy or reprint!