Low steel prices affect Tata Steel’s performance in the UK and the Netherlands

The company notes that the global operating environment remains challenging

The reduction in steel spreads in the first half of 2024/2025 (April-September) affected Tata Steel’s financial performance in the UK and the Netherlands. This is stated in the company’s financial report.

In addition, Tata Steel notes that the British division was burdened by the temporary nature of operations, as blast furnaces were safely decommissioned at the Port Talbot facility, while steel stocks were created for future use.

Koushik Chatterjee, Tata Steel’s Chief Executive Officer and Chief Financial Officer, reminded that the company has signed a contract with Tenova to supply a state-of-the-art electric arc furnace for the UK facility, completed public consultation on the planning application and intends to start large-scale work at the UK site around July next year.

In the second quarter of 2024/2025 (July-September), the UK unit’s revenue amounted to £600 million and EBITDA loss was £147 million. Steel production in the period amounted to 390 thousand tons.

Revenue of the Dutch unit in July-September amounted to £1.3 million, Ebitda for the second quarter of the current fiscal year – £22 million. Steel production in the period amounted to 1.66 million tons. In the Netherlands, the Group is working with the government to support the decarbonization of its operations.

Tata Steel CEO and Managing Director T. V. Narendran noted that the global operating environment remained challenging, with key regions facing slower growth.

“Macroeconomic conditions in China continued to put pressure on commodity prices, particularly steel prices. In India, demand for steel continued to grow, but domestic prices were under pressure from cheap imports,” he explained.

Tata Steel increased steel production in India by 5% year-on-year – to 5.27 million tonnes in July-September 2024, and in the first half of FY2024/2025 it amounted to 10.53 million tonnes (+5% yoy).