Shares of Tata Steel moved higher by 2 per cent to Rs 494 on the BSE on Friday after the company’s provisional domestic sales volume increased by 17 per cent sequentially in December quarter (Q3FY20) on improved market sentiment.
“Sales volume to auto segment was maintained during the quarter. Branded product & retail segment grew 23 per cent quarter on quarter (QoQ) while industrial products and projects grew 12 per cent QoQ. Tata Steel India’s production volume was flattish on QoQ basis,” the company said in a press release. READ HERE
The company further said domestic steel prices reached a nadir in October 2019 before improving from November onwards. Steel prices are expected to improve further with strong retail demand and ongoing restocking demand at the dealers’ ends.
"Chinese steel demand continues to remain buoyant as, despite higher steel production, exports stabilized at around 5 million tons a month. Positive developments on the US–China trade talks along with step-up in China policy easing are expected to provide support to global steel demand and thus steel prices. Escalating geopolitical tensions, however, could pose a risk," it added.
The company’s Europe’s Q3FY20 production and sales volume was flattish on QoQ basis. The South East Asia operations registered lower production volume on QoQ basis due to continued sluggishness in Singapore and Thailand markets, the company said.
In the past one month, Tata Steel has outperformed the market by surging 23 per cent, as compared to a 4 per cent rise in the S&P BSE Sensex. The stock of Tata Group Company was trading at its highest level since July 5, 2019.