Tata Steel India’s plants are operating at 95pc or above capacity utilization rate in August and expect to maintain this run rate in Q2. The company’s long steel plants have achieved full capacity since June, according to the company’s earnings call. Tata Steel’s European plants are operating at around 75pc capacity.
In September, some plants will be shut for scheduled maintenance for a few days but these shutdowns will not impact the company’s production level. Tata Steel’s plants operated at around 50pc capacity during the lockdown imposed by the Indian government. The domestic steel market was almost closed in April, and in May the company’s Indian operation started ramping up production gradually in-line with the improvement in market conditions.
In Q1, Tata Steel reported a net loss of Rs46.09bn ($615.4mn). Tata Steel India significantly increased its export sales to about 50pc in Q1 with a shipment of 1.46mn mt. This helped the company offset the demand slump in the domestic market. With the resumption of economic activities, the company hopes to improve domestic sales and reduce export sales to around 25pc in Q2.