Tata Steel management projected flat realisations for the Indian market in the fourth quarter with potential upside contingent on significant changes in the upcoming Union budget or government safeguards. However, coking coal costs in India are expected to reduce by USD10 per tonne quarter-on-quarter, providing some relief to the company, the management told analysts in a concall.
The steel industry was seeking safeguard duty against cheap imports.
The Directorate General of Trade Remedies (DGTR), has also started an investigation into imports of 'Non-Alloy and Alloy Steel Flat Products', used in various industries, including fabrication, pipe making, construction, capital goods, auto, tractors, bicycles, and electrical panels.
Tata Steel, on the European front, anticipates lower realisations in both the UK and Netherlands due to annual contract renewals at the calendar year-end.
In the UK, realisations are expected to decline by 60 Pound per tonne quarter-on-quarter, driven by a shift in supply mix', an increase in packaging steel supplies and a reduction in automotive supplies. Similarly, Netherlands operations are forecasted to see a comparable drop in realisations for the fourth quarter.
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