Demestic Steel prices to improve further : Tata Steel

Biznextindia : Domestic Steel prices are expected to improve further with strong retail demand and ongoing restocking demand at the dealers’ ends. The prices are improving since November after hitting the bottom in October due to weak demand, said Tata Steel.

“Indian economy remained weak with declining private consumption growth and low investment growth. Domestic steel prices reached the lowest in October 2019 before improving from November onwards. Steel prices are expected to improve further with strong retail demand and ongoing restocking demand at the dealers’ ends” Tata Steel said.

“During 3QFY20, weakness in GDP growth and industrial output continued across major economies affecting steel demand. However, Chinese steel demand was buoyant as despite higher steel production, exports stabilized at around 5 million tons a month. Positive developments on the U.S. – China trade talks along with step-up in China policy easing are expected to provide support to global steel demand and thus steel prices. However, escalating geopolitical tensions pose a risk” Tata Steel has said.

Tata Steel India has reported QoQ 17% rise in its sales volume in the 3^rd Quarter with improved market sentiment. Sales volume to auto segment was maintained during the quarter. Branded Product & Retail segment grew 23% QoQ while Industrial Products and Projects grew 12% QoQ. Tata Steel India’s2 production volume was flattish on QoQ basis.

On the other hand, Tata Steel Europe’s Q3 production and sales volume has remain flat on QoQ basis.  Tata Steel South East Asia operations registered lower production volume on QoQ basis due to continued sluggishness in Singapore and Thailand markets.