Tata Steel India reaches record steel production in FY2023-2024

Tata Steel India, the main division of global steelmaker Tata Steel, increased steel production by 4% year-on-year – to a record 20.8 million tons in the 2023-2024 financial year (ended March 2024). This is evidenced by the company’s preliminary data.

«Tata Steel India has achieved its highest ever performance by removing bottlenecks at its Indian operations and achieving higher steel production at Neelachal Ispat Nigam Limited. In Q4 2024, steel production was generally stable at around 5.38 million tons,» the statement said.

Steel shipments for the year increased by 6% y/y – to 19.9 million tons. The figure also exceeded last year’s record. At the same time, supplies to the domestic market grew by 9% y/y due to increased demand for steel in India and a flexible business model. In Q4, steel sales increased by 11% q/q and 5% y/y – to 5.41 million tons, the highest quarterly figure in history.

Steel production by Tata Steel Netherlands in FY2023-2024 decreased by 24.2% y/y – to 4.8 million tons. This was mainly due to the negative state of the European steel market, as well as the prolonged downtime of blast furnace No. 6. At the same time, the performance improved in Q4 as the unit resumed operations in early February. The unit’s steel shipments totaled 5.3 million tons compared to 5.62 million tons a year earlier (-5.7% y/y).

Tata Steel UK produced 3.02 million tons of steel in FY2023-2024, which is in line with the previous fiscal year. Steel shipments amounted to 2.8 million tons, down 5.1% y/y. Tata Steel Thailand produced 1.12 million tons of steel during the period, down from 1.2 million tons a year earlier (-6.7% y/y), while steel shipments decreased by 7.4% y/y – to 1.12 million tons.

Thus, the Group’s total steel production amounted to 29.7 million tons, down 2.4% year-on-year (30.43 million tons). At the same time, steel supplies increased by 1.7% y/y – to 29.12 million tons.

As GMK Center reported earlier, according to Tata Steel CEO T.V. Narendran, the company plans to invest approximately $1.2 billion annually to increase its steel capacity by 1-2 million tons per year to maintain its market share. However, the CEO expressed concerns about the growth of imports from China.

Tata Steel is one of the world’s leading steel companies with an annual steel production capacity of 35 million tons. The company intends to achieve zero carbon emissions by 2045.