Bearish signal on weekly chart
Covid Impact on broader demand matrix
In Europe, we maintained production levels in FY 2019-20 in line with FY 2018-19. After slower than expected growth in 2019, steel demand is estimated to contract significantly in the Financial Year 2020-21. According to the World Steel Association (‘WSA’), it is possible that the impact on steel demand in relation to the expected contraction in GDP may turn out to be less severe than that seen during the erstwhile global financial crisis.
Reorganizing Indian subsidiaries
We are well on course of reorganising India subsidiaries into four segments: Mining, Long Products, Downstream and Infrastructure & Utilities. We made progress on the Tata Steel Kalinganagar phase two expansion, with a focus on the pellet plant and cold rolling mill. We, through our subsidiary company, acquired the steel business of Usha Martin Limited. The integration of Tata Steel BSL Limited is progressing well.
Insulating revenues from steel cyclicality
Steel industry is cyclical in nature. In order to insulate revenues from steel cyclicality, the company is focusing on the branded retail business and downstream product portfolio. The Company has embarked on building a Services & Solutions (‘S&S’) business which offers steel-based solutions for end user needs and which are seeing significant growth