India’s Tata Steel Limited has forecast flat realisations from domestic sales in the fourth quarter (January-March) of the fiscal year 2024-25 but they could have upside potential depending on changes in the national budget for 2025-26 to be presented by the government next month, the company informed investors on Wednesday, January 29.
The company said that coking coal costs in India are expected to decline by $10/mt during the fourth quarter, providing it with some relief.
It said that the steel industry is seeking a safeguard duty against cheap imports, noting that the Directorate General of Trade Remedies (DGTR) has started investigations on the scope for imposition of such a levy.
Tata Steel, on the European front, anticipates lower realisations in both the UK and the Netherlands due to annual contract renewals at the calendar year-end.
In the UK, realisations are expected to decline by £60/mt as a result of a shift in supply mix, an increase in sales to the packaging industry and a reduction in sales to the automotive industry.
Similarly, the Netherlands operations are forecast to see a comparable drop in realisations for the fourth quarter.
Cost trends in Europe present a mixed picture. While coking coal costs in the Netherlands are expected to decline by $20/mt, iron ore costs are projected to dip marginally by $3-4/mt, the company said.
Tata Steel Limited reported a 36 percent decline in net profit in the third quarter of the fiscal year 2024-25 to INR 3.26 billion ($37.77 million).
