"Breaking" and "Standing" under the Epidemic of Tata Steel in India

2020-07-10 17:51:07

At present, the overseas COVID - 19 epidemic situation is still more serious by the Beijing time on July 9, 11, 13, India has confirmed COVID - 19.769 million cases, more than Russia, has become a global COVID - 19 confirmed cases of the third largest number of countries, Brazil with the United States belong to the current global epidemic "the epicenter" zone is more worrying is that India's population and the population density is the Brazil's several times, and epidemic prevention work harder

The worsening of the epidemic in India has had a great impact on the production and operation of the steel industry and the operation of the steel market in the country. Under the national epidemic prevention measures adopted by India, Tata Steel and other Indian steel companies tried their best to break through the difficulties and make great efforts in "breaking" and "establishing"

Change ideas both accords with the trend of the market adjustment operations earlier this year, COVID - 19 sudden outbreak, under stringent blockade measures in India, tata steel production, product demand, Mired in losses from the company recently released in the fourth quarter of fiscal 2019 (January 1, 2020-2020) on March 31, earnings, the company's net loss for the fourth quarter of 12.36 billion Indian rupees (us $163.57 million);

The sales revenue of the fourth quarter reached 337.7 billion Indian rupees (about 4.47 billion US dollars), down 20.4% year on year. In terms of sales volume, the steel sales volume of the Company's Indian business in the first quarter of this year was 4.03 million tons, down 16.9% month on month and down 14.6% year on year.

In terms of output, the company's Steel production in India was 4.74 million tons, up 6% month-on-month and 5.8% year-on-year.

European business steel output of 2.56 million tons, rose 2%, fell 6.2% year on year, CEO of the company's managing director LanDeLan said: "although the second half of the economy starts to recover, but considering the COVID - 19 outbreak led to unprecedented destruction and economic uncertainty, tata steel have to readjust the way they operate, and will focus on saving operating costs" to hedge risk, tata steel adopted measures

Is a cut in production in India and Europe led to demand in adverse conditions, the production scale of the company to cut the major cities, including in India Jamshedpur (Gu M Xie Debu,) the relevant person in charge of the company's flagship factory said: "at present, the Indian and European steel demand fell sharply, considering the downstream customers to suspend operations into maintenance and maintenance mode, we have decided to respond to administration of Indian steel co., LTD., a call to cut production, India and the European market to match the current low demand" 2 it is to reduce the overseas layout, strengthen India domestic business

In recent years, tata Steel has been offload its stake in southeast Asia in November last year, the company with Vietnam Thai Hung trading company signed an agreement, formal sale the Nat in Vietnam Steel Vina company (tata Steel main.vn Steel long products manufacturers and Vietnam company joint venture) hold full ownership of the tata Steel to reduce the overseas layout to strengthen India's domestic operations to take another step

The company managing director T.V.N arendran once said: "southeast Asia from the Angle of demand is undoubtedly an exciting market, but because there are a large number of imported goods, so also is a very competitive market," the third is to the local government for loans to support affected by the epidemic, European manufacturing production, tata steel Europe company orders fell sharply as a result, the company to the British government for 500 million pounds (about $620 million) loan support, to survive the crisis, a company spokesman said the company will continue to negotiate with the government, to confirm the feasible financing plan

Turn to expand export Steel ease the demand pressures on July 6, Indian Steel web Steel Sharma, head of the Guru to the media, said: "since the beginning of the year, affected by the epidemic, the Indian Steel demand, Steel stocks at record levels, the projected demand in the short term of resuscitation in response to weak domestic demand for Steel, Steel mills in India have choice to a lot of overseas export of Steel products, one of the main exporting countries are China," India Joint parliamentary committee (be Plan

Committee), according to data from April to may, India to China exported 440000 metric tons of 1 million tons of steel billet, finished product material respectively accounted for 26% of the Indian steel products exports at the same period 77%, India's Credit Rating Agency ICRA (ipl) Credit Rating Agency), senior vice President of Jayanta Roy said: "by adding steel exports to alleviate the pressure of the domestic demand, as India's steel mills epidemic under option

Over the same period, China's epidemic situation, market demand fast recovery, attracts steel mills in India exports to China increased steel "India's, a rating agency, India, according to data from the Ratings under the good of China's steel demand to speed up the recovery, India exports to China in May, 100, ten thousand tons of steel products, mainly for the slab hot rolling billet rolled plate, the price is $370 / ton respectively ~ $390 / t $375 / t ~ $390 / t $410 / t ~ $415 / ton

The agency head also said that although the profit is low, but considering the Indian market demand remains weak and India with the development situation, through to increase China's steel exports to make up for domestic demand gap, can let the Indian steel companies to obtain certain profit, is good for India's steel mills more choice but now, the Indian steelmaker JSW (southwest of Beijing, the iron and steel company), marketing director Jayant Acharya said: "most countries around the world crude steel output fell, under the condition of China's crude steel production growth of 4.2% year-on-year in May

As China continues to expand production, India's steel high export growth can be sustained doubtful, combined with the other parts of the current global demand uncertainty, the Indian steel companies should be ahead of time to look for alternative market "seeks the new bureau of relying on the terminal market and stronger features high quality products and services of tata steel main business includes production and sales of iron and steel (including hot crude steel steel) alloy and mineral chromium (including chromium ferroalloy ore concentrate ferrochrome ferromanganese silicon manganese and manganese) pipe and bearing, terminal market are mainly distributed in India, Europe and southeast Asia

, tata steel India branch company mainly produces steel material (long flat pipe and bearing steel) and sales of ferroalloy minerals such as tata steel Europe main production and sales of long products flat material tata steel Europe through the way of set up a sales office, cooperate with other enterprises to develop new markets, successively set up sales offices in more than 30 countries.

Adopt a new operating model, the business is divided into three major parts, including steel production center (including strip UK's strip departments and the continent Europe long products sub-departments) professional products business (including width, galvanized sheet wrapping steel pipe special steel, construction steel) sales network (including the UK and Ireland sales branch of the European branch of the international sales branch) as one of the top ten iron and steel enterprises in the world, tata steel for many years, formed a unique product is service and a competitive advantage is to build the core competitiveness of products

Tata steel in the global aerospace field always has a strong supplier of high purity steel its uk-based Stocksbridge steel mill, by using advanced vacuum induction melting process aerospace industry steel production, products are mainly used in the manufacture of aircraft engine gearbox bearing plane structure and chassis parts such as steel has strict requirements on corrosion resistance strength of the company will have a larger market share in this area 2 it is to play to the brand effect, increase customer sticky as India's biggest private steel companies, tata steel have higher brand value，metal shredder machine manufacturer in gujarat

Tata steel, 2019 with 30.15 million tons of crude steel output ranked ninth in the domestic, the company production of steel accounted for 24% of the market, special steel wire rod accounted for more than 40% market share at the same time, the company subordinate of ferroalloy and mineral department business also account for more than 25% in India and the global market share of more than 5% higher market position and larger market share, bring huge scale economic benefits for the company, ensure the steady growth of the company's customer base and sales four is to establish a highly efficient business model, improve the efficiency of the value chain metal shredder machine manufacturer in gujarat

This, combined with the fact that its steel capacity is concentrated in parts of the world where the cost of the raw materials used to make steel is low, has reduced production and transport costs significantly, indirectly boosting profitability