Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets


The company expects global steel demand to improve gradually backed by recovery of economic activity and relaxation in mobility restrictions along with policy stimulus. However, overall demand is likely to remain lower in 2020, compared to the prior year.

Indian steel demand could improve backed by increased government spending on infrastructure and healthy demand from rural sector due to good monsoon.

In Europe, steel demand is predicted to rebound in 2021 supported by consumption growth in construction and automotive sectors.

Asian steel prices are expected to witness correction on the back of robust steel demand, strong iron ore prices and lower exports from China.



Tata Steel posted a consolidated net loss of Rs46.09bn in Q1FY21 (April-June), compared to the net profit of Rs6.95bn in the prior year period. Company’s adjusted EBITDA stood at Rs10.38bn, down by 81pc from Rs55.30bn in the preceding period. 

Crude steel production in the quarter fell by 28pc to 5.14mn mt from 7.15mn mt in Q1FY20.



On a standalone basis, the company reported a net profit of Rs11.93bn in Q1, down by 22pc from Rs15.39bn in the preceding year and a loss of Rs4.36bn in the prior quarter. The EBITDA fell by 70pc to Rs12.91bn from Rs42.77bn in the year prior. The decline was driven by lower capacity utilisation levels in Q1. Sales volume in India declined by 27pc from Q4FY20 amid nationwide lockdown. Additionally, manufacturers relied on exports to keep their businesses afloat as COVID-19 pandemic had stunted the domestic demand. 

Overall deliveries in June 2020, however, improved to 115pc supported by relaxation of lockdown measures and domestic deliveries increased to 74pc.


Tata Steel BSL

In Q1, Tata Steel BSL registered a decline of 41pc in crude steel output to 660,000mt from 1.12mn mt in the prior year quarter due to COVID-19 related impacts. However, with the phased opening of economy, sales volume witnessed a growth in June 2020 and achieved pre-COVID levels. The company’s EBITDA declined by 76pc to Rs21.56bn from Rs90.92bn in the prior year quarter.


Tata Steel Long Products (TSLP)

TSLP’s crude steel production in Q1FY21 remained unchanged at 121,000mt from the prior year quarter. Steel sales grew by 25pc in 1QFY21, while DRI (Direct Reduced Iron) production and sales witnessed a dip from the prior year due to closure of markets. Steel exports’ sales volumes rose to 64,000mt.


Tata Steel Europe

Tata Steel Europe produced 2.15mn mt of liquid steel in Q1FY21, down by 19pc from 2.65mn mt in Q1FY20. Deliveries fell by 12pc to 1.98mn mt from 2.26mn mt impacted by weak demand. The company’s EBITDA registered a degrowth of Rs31.55bn from Rs2.7bn.



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