Indian steel giant, JSW Steel in its BSE filing on Sunday has revealed that the company’s consolidated crude steel output for the first quarter of ongoing fiscal Q1 FY20 (during Apr-Jun) has been recorded at 7.61 MnT, registering a y-o-y growth of 9.18% against 6.97 MnT of crude steel in the corresponding period of previous fiscal.
Tata Steel India produced 4.37 MnT of steel during Apr-Mar against 2.81 MnT against Q1 FY19. Tata Steel Europe produced 2.66 MnT in the quarter as compared to 2.81 MnT in the same period of 2018-19. Tata Steel Southeast Asia produced 0.58 MnT in Q1 FY20 against 0.52 MnT in Q1 FY19.
In terms of sales, Tata Steel’s consolidates sales have been recorded at 6.75 MnT in Q1 FY20 against 6.39 MnT in the corresponding quarter of previous fiscal. Company’s Europe sales have been recorded at 2.27 MnT in Q1 FY20 against 2.45 MnT in Q1 FY19. In South East Asia, the company sold 0.61 MT in the quarter as against 0.60 MT in the same period previous fiscal.
What impacted Tata Steel’s business in Q1 FY20?
In India, the company said that liquidity issues in the NBFC and banking sector along with rural stress have negatively impacted sentiments and overall economic activities, including domestic consumption. Despite this, Tata Steel’s production in India during the first quarter increased by 20% year-on-year with consolidation of Tata Steel BSL for the full quarter and higher capacity utilization at both Tata Steel Standalone and Tata Steel BSL, it said.
In Europe, the steel industry is facing significant headwinds in terms of lower economic growth and trade flow uncertainty that is impacting steel consuming products, the company added. “Tata Steel Europe’s Q1 FY20 production was impacted by planned shutdowns and unplanned outages during the quarter. This coupled with sluggish demand affected the sales volume in 1QFY20,” it said.
The company further said that resumption of trade talks between the US and China, and the recent Union Budget announcements to resolve some of the liquidity issues are expected to trigger an improvement in business sentiment globally and in India. This is also expected to translate into a stronger business performance in the second half of the current financial year.
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