Bhubaneswar: Despite drop in overall steel consumption and production in India, Tata Steel has ramped up its steel production to the pre-Covid levels in the July-September quarter (Q2) with all major sites are operating with full capacity utilization.
In the second quarter Tata Steel has increased its crude steel production by 54 per cent QoQ and 2 per cent YoY to 4.59 MT (Million Tonens). The company has achieved highest ever deliveries of 5.05 MT, a rise of 72 per cent QoQ and 22 per cent YoY.
“During 2QFY21, global economic activity has started to recover with phased relaxations in lockdown measures; however, the pace of improvement has been varying across the geographies. Tata Steel continues to closely monitor the situation and take appropriate actions in line with the directions issued by the regulatory authorities keeping in view the health and safety of its employees and the community, and the interests of its customers and other stakeholders. We also continue to stay focused on aggressively managing costs and cashflows” Tata Steel said.
In the second quarter, India’s overall steel consumption has declined by 7.5 per cent while steel production was down by 1.9 per cent.
“We leveraged our robust marketing network and strong customer relationships to reach our highest ever quarterly deliveries of 5.05mn tons which translates to 72 per cent QoQ and 22 per cent YoY growth,” the company said.
It has reduced exports to 24 per cent of overall deliveries and sharply ramped up domestic deliveries to 3.86 MTs which translates to an increase of 164 per cent QoQ and 10 per cent YoY.
Meanwhile, in Europe, macroeconomic and steel demand recovery is more gradual. Tata Steel Europe’s 2QFY21 sales volume increased by 14 per cent QoQ to 2.26mn tons. Overall Steel production was stable on QoQ basis.