Tata Steel logs best-ever October output jump

Font Size

Print

Feedback

Email

Discuss

Related Articles

Anil Ambani tops pay chart; Mukesh biggest dividen...India says no to legally binding emission cutSix Indian cos, CII ink deals in USCBI arrests CLB member for taking bribe

Mumbai: India's largest steel producer Tata Steel Ltd on Friday announced that the company has recorded its best-ever production in most units during October. The company's October sales rose 38% to 4,62,000 metric tonnes against 3,35,000 tonnes in the same month last year. The Indian operations of Tata Steel contribute about a quarter of the group's total annual global capacity of 30 million tonnes, which includes Corus, Europe's second-largest steelmaker.

Tata Steel's saleable steel production during the month rose by 27% from a year earlier to 5,70,000 tonnes and crude steel production gained 22% to 5,99,000 tonnes compared to 4,50,000 tonnes and 4,89,000 tonnes, respectively, in October 2008.

Explaining the production hike, Gaurav Dua, research head, Sharekhan, said, "The production and sales figure for steel manufacturers year-on-year will be higher for October 2009 because of the low base last year. Steel production and sales in the same period last year were impacted due to the slowdown. This percentage growth in sales and production figures will continue in coming months for steel manufacturers because of low base y-o-y.”

The hot metal production of Tata Steel was also up by 17% to 6,49,000 tonnes during October 2009. Tata Steel shares on Friday were up 3.08% to close at Rs 499.70 on the Bombay Stock Exchange. "Steel melting shops recorded their best ever production of crude steel at 5,99,255 tonnes. This is at 7.2 mtpa against the rated capacity of 6.8 mtpa," the company said in a statement.

The company also recorded a growth of 89% in its long product sales over October 2008 as demand grew from the construction sector. Flat products sales also grew 13% over same period last year. Flat steel products are used by consumer durable industries and the automobile sector.

Meanwhile, India's third-largest steel manufacturer, JSW Steel Limited also reported a growth of 34% y-o-y in crude steel production for October this year. JSW Steel's crude steel production during the month stood at 4.53 lakh tonnes as compared to 3.38 lakh tons in October 2008.

Though the demand in the domestic market is growing, weakening global trends and cheap imports are forcing Indian steel manufacturers to reduce their prices. Tata Steel had also cut prices of its flat products due to weakening global trend.