On Thursday, Tata Steel announced that its production decreased by 34% in the June quarter to 2.99 million tons, compared with 4.50 million tons recorded in the same period last year, due to weak demand amid pandemic Covid-19.
Sales were down 26% to 2.92 million tonnes (3.96 million tonnes) as most major corporations cut infrastructure spending.
Overall production and sales were lower due to mobility constraints as the pandemic impacted manufacturing activity and consumer sentiment across all regions, Tata Steel said in a statement.
In India, he said, capacity utilization of upstream facilities was brought to 50 percent in April, while downstream units were closed.
With the phased opening of the economy, the utilization rate gradually increased to about 80 percent by the end of June. According to the company, the refining capacity has also been restarted and is gradually increasing.
To counter the closure of Indian markets in April and May, exports increased significantly as new markets entered, which accounted for about 50 percent of total sales in June.
While sales were lower in April and May, they improved significantly in June as economic activity resumed in India. Due to improved domestic demand, the share of sales in India will increase in September, the statement said.
Steel production in Europe fell 19% to 2.14 million tonnes (2.65 million tonnes), while sales fell 14% to 1.94 million tonnes (2.26 million tonnes).
While Europe did not impose a full lockdown, the macroeconomy has been affected by the Covid outbreak. Production in Europe fell to about 70 percent. The company said in a statement that key steel consumption sectors such as the automotive and construction sectors continue to experience pressure, although demand for packaging materials remains strong.