Tata Steel India’s sales volume increased 17% QoQ for Q3 FY20 with improved market sentiment. The sales volume increased by 24.4% when compared to the same quarter last year.
The company maintained its sales in the auto segment during the quarter. Its Branded Product & Retail segment grew 23% QoQ while Industrial Products and Projects grew 12% QoQ. As per the provisional figures released by the company during Q3 FY20 Tata Steel India’s production grew by 1.8% as against Q3 FY19 to 4.46 mt but was flattish on QoQ basis.
Q3 FY20 witnessed weak GDP growth and industrial output across major economies which affected steel demand. The main reason for the weakness in the economy can be attributed to the low investment growth and declining private consumption growth. The Chinese demand also remained buoyant as despite higher steel production. The positive development in the US-China Trade talks along with step up in China policy can provide an uptick to the global steel demand. However, increasing geopolitical tension does certainly pose a threat.
Tata Steel Europe’s Q3 FY20 production which touched 2.5mt grew 6.8% as against Q3 FY19 but the sales volume remained flat on QoQ basis. The overall slowdown along with seasonal weakness kept steel spreads under pressure as declining steel prices offset the benefit of softness in raw material prices.
Tata Steel South East Asia operations registered lower production volume on QoQ basis due to continued sluggishness in Singapore and Thailand markets
