Tata Steel Q1 Steel production drops by 33% to 2.99 MT

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Bhubaneswar: The nationwide lockdown and stoppage of economic activities have affected Tata Steel’s domestic steel output and sales. The Indian Steel major has reported 33 per cent decline its India production at 2.99 million tonnes (MT) in the first quarter of FY 21 as compared to 4.50 MT in the Q1 of FY20.

On sequential basis, the company’s crude steel output has dropped by 36.7 per cent from 4.72 MT in the Q4 of FY20. Domestic sales volume has also slipped by 26 per cent YoY  to 2.92 MT due to weak demand from 3.96 MT in the Q1 of FY20.

“Overall 1QFY21 production and sales volumes were lower as the outbreak of COVID-19 and ensuing mobility restrictions severally impacted industrial activity and consumer sentiment across all geographies.  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” said Tata Steel.

“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 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” it added.

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