Turbulence in Global Steel Trade: How has Tata Steel Fared?

The global steel industry has been facing headwinds, inviting turbulence due to geopolitical disturbances across the world, this has reflected the broader challenges and opportunities of the global market. Amidst all this, Tata Steel, one of the industry’s legacy players, has shown resilience and strategic agility amidst the turbulence

The Q4 Update

Tata Steel saw a 6% hike in deliveries, amounting to 19.9 MT in FY24, looking a bit deeper we see the automotive and special products segment bring a delivery hike of 8%, amounting to 2.9 MT in FY24. This surge is indicative of the recovery in the automotive sector and Tata Steel’s ability to capitalize on market demand. The branded products and retail segment experienced an impressive 11% rise in deliveries, totalling 6.5 MT. The industrial products and projects segment also witnessed a 6% increase in deliveries, reaching 7.7 MT. 

This impressive performance comes while the world going through economic challenges and despite that Tata Steel set a new record in crude steel production, achieving 20.8 MT in FY24, marking a 4% increase from the previous fiscal year. It needs to be noted that Tata Steel’s liquid steel production in the Netherlands and the UK has declined.

Market Check

Understandably looking at Tata Steel’s quarterly update the markets were happy and the stock reached a 52-week high while at the same time, Tata Steel GDR (Global Depository Receipt) listed on the London exchange has also climbed to a 52-week high.

Conclusion: Tata Steel’s journey through FY24 is a narrative of resilience, the company has not only navigated through the complexities of global steel trade but has also set new benchmarks in production and delivery. With its strategic initiatives and robust performance, Tata Steel is well-positioned to continue its growth trajectory in the coming years.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.