Tata Steel India’s crude steel production rose by 3pc to 4.6mn mt in the third quarter of FY2021, while production in Europe increase by 4pc to 2.61mn mt from a year ago. Despite strong momentum, sales volumes lowered due to constrained inventories following robust sales in Q2, according to the company’s provisional operational update.
|Tata Steel’s Q3FY2021 production (mn mt)|
In Q3, deliveries in India fell by 4pc to 4.66mn mt, while in Europe it lowered by 10pc to 2.11mn mt from a year ago.
In India, domestic deliveries rose by 4pc in Q3 to 4.16mn, while exports contracted to less than 11pc of total sales. Domestic sales to automotive and special products’ segment increased by 48pc in Q3 from Q2 amid improved demand and market share gains from existing and new products. Branded and retail products deliveries rose by 5pc from the prior quarter, while industrial products and projects sales fell marginally. Among industrial, high-end products sales improved in oil and gas, lifting and excavation and pre-fab building sub-segment.
Tata Steel Europe ramped production in Q3 despite scheduled maintenance shutdowns. Production ramps were aimed at restocking inventory ahead improving business conditions and seasonally better sales in Q4. Deliveries to the automotive and engineering sectors improved during the quarter.
In Q3, Tata Steel BSL’s crude steel output dipped by 4pc to 1.109mn mt amid maintenance shutdowns. Deliveries fell by 10pc to 1.149mn mt. The company’s domestic sales in Q3 rose to 947,000 mt, up by 7pc from Q2, while exports reduced to 18pc from 31pc in Q2.
Tata Long Products
Despite maintenance shutdowns, Tata Steel Long’s recorded highest ever quarterly crude steel output of 173,000mt in Q3, up by 10pc from a year ago on the back of process improvements. Sales rose by 2pc to 166,000mt from Q2, but down by 10pc from Q3 on low inventories. In Q3, rolled products and alloy wire rod sales volumes rose by 17pc and 26pc, respectively, to achieve best-ever quarterly sales.
DRI production fell amid maintenance shutdowns in Q3 to 213,000mt down by 2pc from a year ago and 5pc from Q2, while sales volumes lowered due to lesser production and increased internal consumption for electric steelmaking.