InvestorQ : Is it true that Tata Steel is back to full production at pre-COVID levels?
Dilmini Mercia made post

Is it true that Tata Steel is back to full production at pre-COVID levels?

Answer
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Dawn Cherian answered.
3 weeks ago


That seems to be the good news as far as Tata Steel is concerned. It has been supported by a good monsoon and a sharp recovery in rural demand. That eventually led to Tata Steel reverting back to 100% of pre-COVID production levels.

In the months of July and August, Tata Steel had to rely heavily on exports to China and Vietnam for boost its sales numbers, at least to respectable levels. With domestic demand picking up, the company will be less dependent on South East Asian demand.

If you include the capacities accumulated by the acquisition of stake in Bhushan Steel, then Tata Steel has a total capacity of 20.6 million tons per annum but in the Jun-20 quarter it had been functioning at less than 15% capacity utilization due to weak COVID demand.

With building activity tepid, the construction demand for steel is still low. However, Tata Steel is seeing robust pick-up in demand from the government, especially in the oil and gas infrastructure building, where a lot of money appears to be going into.