Tata Steel has reported that its sales in December quarter were down 10 per cent at 2.97 million tonne (mt) against 3.30 mt in the same period last year.
Sales at the recently acquired Bhushan Steel (Tata Steel BSL) were down at 92 lakh tonnes (1 mt) while output was up at 1.04 mt (0.96 mt). Sales volume were lower due to seasonal headwinds, particularly in terms of softer automotive demand and inventory replenishment, said the company in a statement.
Sales at the Tata Steel BSL were also affected due to a softer demand, mainly in automotive and appliance segments and inventory replenishment, said the company. Its sales in Europe were down at 2.30 mt (2.44 mt) and production was down at 2.33 mt (2.67 mt).
Tata Steel Europe’s year-on-year production was impacted by shutdown for ongoing life extension upgradation program on one of Port Talbot’s blast furnaces during Q3.
The blast furnace was out of operation for the entire quarter due to the upgradation program. Performance was impacted by operational issues in Q3 in both its main steelmaking locations of IJmuiden and Port Talbot. Lower production volumes and adverse product mix will impact financial results, it said.
The company’s sales in South-East Asia was down at 0.58 mt (0.62 mt) and production was down 0.51 mt (0.55 mt).
Production and sales volume were lower due to continued sluggishness in Singapore and Thailand markets, it said.