Tata Steel: Rising demand, steel prices and integrated ops bode well

During Q2, Tata Steel not only achieved its highest-ever domestic deliveries of 5.05 million tonnes (MT), volumes at its European operations too, rebounded to year-ago levels

Tata Steel’s provisional volume numbers for the September 2020 quarter (Q2) impressed the Street, and rising demand and steel prices also point towards an improving business outlook. 

Being an integrated steel producer, the company remains largely insulated from rising prices of key raw material such as iron ore. Not surprising then, that the stock is among the top picks of foreign brokerages, which foresee further improvement in volumes and profits led by its India operations.

In Q2, Tata Steel not only achieved its highest-ever domestic deliveries of 5.05 million tonnes (MT), but volumes in its European operations too rebounded to year-ago levels.