Mixed outlook for Tata Steel stock as global demand remains soft

In Q3FY24, Tata Steel's standalone revenue increased by 2 per cent year-on-year (Y-o-Y) to Rs 34,700 crore, in line with consensus

The medium-term future of Tata Steel can only be assessed by examining several separate trends. The domestic business is performing well, and the momentum will continue due to demand from an infrastructure push. However, the European business is struggling. The UK facility is undergoing a low-carbon electric arc furnace (EAF) makeover at considerable expense, along with negotiations with the union.

The Netherlands Blast Furnace 6 (BF6) has almost completed a maintenance/relining shutdown. Global demand is soft, with China, holding over 50 per cent of global production capacity, exporting 7-8 million tonnes (mt) in the third quarter (Q3) of 2023-24 (FY24).