Strong demand, firm prices to buoy Tata Steel’s FY22 show
At this price, the stock is trading at 4.5 times EV/Ebitda, which is below its last five-year average.
Synopsis
Steel prices in the US are at $1,500 per tonne, at 1,000 per tonne in Europe and $1,000-1,050 in Southeast Asia. In India, prices are below $900 per tonne. Current local steel prices may sustain as Indian buyers have a cost edge.
ET Intelligence Group: Commodity super-cycles are rare – not as rare as the appearance of Comet Halley – but they do come after long intervals. And Asia’s oldest steelmaker is benefiting from such a cycle now.
Doubts over demand and debt are dead and buried, putting Tata Steel on a concrete path of exponential growth as the dynamics are drastically altered for the primary infrastructure alloy. “In terms of structural changes, the next 10 years
