Tata is kissing any hopes of European profits goodbye – although it reportedly won’t be selling its EU assets.
Via Reuters: “Tata Steel Ltd, India’s largest steelmaker by market value, swung to a loss in its fourth quarter, hit by weak demand in Europe, its top market and production region. The company’s January-March net loss was 65.29 billion Indian rupees ($1.2 billion), compared with a 43.3 billion rupee profit a year earlier.”
“Tata said it expected to take no further charges in Europe and has put no European assets up for sale, following a $1.6 billion writedown for the region in the past financial year due to weak demand.”
Current Steel and Raw Material Input Prices:
The 3-month price of steel billet saw the biggest upwards shift for the day, rising 13.3 percent on the LME to close at $170.00 per metric ton on Thursday, May 23. Also on the LME, the steel billet cash price saw little movement on Thursday at $130.00 per metric ton.
Chinese steel closed mixed yesterday. The price of iron ore 58% fines from India inched northward yet again on the day. The price of Chinese HRC fell 2.2 percent yesterday, however, after three straight days with no change. After holding steady for the past few days, the price of Chinese slab fell 0.3 percent.
The US HRC futures contract 3-month price showed little movement yesterday, hovering around $600.00 per short ton. For the fifth consecutive day, the US HRC futures contract spot price held flat at $578.00 per short ton.