Tata Steel reports increase in steel production and sales

Steel major Tata Steel today said its domestic steel production increased by 2.18 per cent to 3.27 million tonnes (mt), and sales by 3.24 per cent to 3.18 mt in September quarter (Q2), on a provisional, standalone basis. 

The company reported steel production of 3.20 mt and sold 3.08 mt in Q2FY18, a company statement said here. Tata Steel India's Q2FY19 production was higher mainly due to better plant availability; sales increased 7 per cent quarter on quarter with higher demand from the market. 

Automotive and special products sales grew by 17 per cent year on year to 552 kilotonnes (kt) in Q2FY19, mainly driven by higher demand from the auto sector. The company's production improved to 6.44 mt and sales to 6.14 mt in H1 FY19 as against 6.15 mt and 5.83 mt respectively in the corresponding period last year. 

The company also announced that its recently acquired Bhushan Steel, which reported higher production and sales in Q2FY19. The production increased from 0.85 mt to 1.05 mt and sales from 1.03 mt to 1.14 mt. Its Q2FY19 sales increased 34 per cent quarter on quarter as improved marketing strategy helped in inventory reduction, the release said. 

However, Tata Steel Europe reported lower production of 2.46 mt and sales of 2.25 mt in the quarter ended September 2019 as compared to 2.60 mt each in the same period last year. 

The production of European operations was impacted by shutdowns for ongoing upgradation program, annual maintenances in the seasonally weaker quarter; two unplanned outages also impacted production. 

The deliveries were lower due to lower production; further impacted by seasonality, the release said. The company's Tata Steel South-East Asia operations also reported lower production of 0.55 mt and sales of 0.65 mt in Q2. 

The production improved on a quarter on quarter basis but was lower on a yearly basis at both Tata Steel Thailand and NatSteel. NatSteel production was impacted by annual maintenance, other production related issues. 

Tata Steel Thailand production was lower in-line with weak demand in Thailand, it said.

(With inputs from agencies.)