Tata Steel India reported an 11 per cent decline in deliveries in the first quarter of 2021-22 compared with the fourth quarter of the last fiscal, signalling that partial lockdown and restrictions because of the second wave of Covid-19 dented demand for the metal in the country.

Deliveries of 4.15 million tonnes (mt) were, however, significantly higher than the same period of the last fiscal when the nation underwent one of the strictest lockdowns in the world. Sales volume was up by 43 per cent compared with April-June of 2020-21 when Tata Steel India recorded only 2.93mt sales.

Production of Tata Steel India, which includes those of subsidiaries such as Tata Steel BSL Ltd and Tata Steel Long Products Ltd, was 4.62mt, 2.6 per cent down quarter-on- quarter as the entities had to supply liquid medical oxygen (LMO) to hospitals, cutting down on production level. Cumulatively, they supplied 47,800 tonne LMO to hospitals when oxygen demand spiked during the second wave.

However, production was up 55 per cent compared with the same period of the last fiscal when Tata Steel India reported 2.99mt production. The sales and the production volumes reveal a contrasting picture of business and severity of the pandemic in terms of affliction and death.

The first wave caused more damage to the business and industry while during the second wave more people contracted Covid-19 and succumbed to the disease than the first. However, during the second wave, large enterprises were more prepared to navigate through the uncertain times with the Centre not imposing a blanket curb like in the first.

Exports raised

To offset the impact, exports were increased to 16 per cent of the total sales against 11 per cent in the fourth quarter of the last fiscal. The domestic market has been improving since the middle of June with easing lockdowns, the company stated in a statement.

Steel majors also increased prices multiple times from April onwards, giving rise to the expectation that net sales realisation would make up for the decline in sales vis-a-vis the January-March quarter of the last fiscal.

Tata Steel Europe’s steel production grew 27 per cent year-on-year to 2.73mt while deliveries increased 19 per cent . While production was up 5 per cent quarter-on-quarter, sales were down 4.4 per cent.

Tata Steel Southeast Asia, which the company decided not to sell, saw a 49 per cent year-on-year growth in production, while steel deliveries increased 50 per cent year-on-year.