Tata Steel’s struggling Europe business is expected to report a slight increase in profit margins in the first quarter, mainly helped by stable global steel prices and lower input costs, moneycontrol.com reported.
Tata Steel Europe, which makes up for more than half of Tata Steel’s consolidated revenue, has been going through a tough time since the recession struck the continent five years ago. Since then, the company has been closing units and cutting down on workforce to save costs and reduce losses.
Raw material prices of iron ore and coking coal have fallen steeply in the past few quarters while steel prices have remained stable, leading to better profit margins.
Chinese steel prices were flat for the day. The price of iron ore 58% fines from India hit a high price of CNY 840.00 ($136.38) and a low price of CNY 830.00 ($134.76) per dry metric ton. The price of Chinese HRC continues hovering around CNY 3,380 ($548.78) per metric ton for the fifth day in a row. The price of Chinese coking coal held steady at CNY 1,390 ($225.68) per metric ton.
Also on the LME, the steel billet cash price showed little movement yesterday, hovering around $420.00 per metric ton. The steel billet 3-month price was unchanged on the LME at $425.00 per metric ton.
The US HRC futures contract 3-month price increased 0.5 percent to $645.00 per short ton. The US HRC futures contract spot price saw little movement at $675.00 per short ton.