Indian steelmaker Tata Steel Limited is pushing to increase its share of downstream value-added products to 60 percent, to hedge against volatile steel prices and raw material costs, company CEO, T. V. Narendran said in a statement on Tuesday.
The company is expanding its downstream footprint in galvanized steel, packaging steel, tubes and wires, while also targeting $738 million in cost transformation savings in 2026-27 through digitalization and AI-driven efficiencies, he said. It recently acquired the remaining stake of its joint venture partner BlueScope in the coated steel business and is also adding a hot rolled galvanizing line at Tarapur. The company is additionally expanding packaging steel capacity by about 300,000 mt per year.
The company’s existing product line currently accounts for around 35-40 percent of its portfolio, and the strategy is aimed at reducing exposure to the volatility seen in basic steel products such as hot rolled coils and construction steel, where pricing pressures tend to be sharper.
Narendran said current price levels appear sustainable due to rising input costs, which will need to be passed on at least in part, improving global market balance and reduced import pressure.
Chinese steel prices have risen by $20-25/mt in recent weeks, while exports from China have moderated from 11-12 million mt a month to 9-10 million mt, helping tighten international markets, he added.