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How Dutch Rejig Helps Tata Steel
April 15, 2025
|Mint Hyderabad
A meltdown Tata Steel Nederland has faced profitability stress in the recent past amid lower realization and high energy costs.
Last week, Tata Steel Nederland announced a crucial transformation programme aimed mainly at reducing costs amid tightening spreads in the European market. High energy and carbon costs in recent years have put steel spot spreads under pressure in Europe. As a report by Axis Securities points out, the spreads were at a multi-year low in Q3FY25 at €170 a tonne versus a historical average of €240 a tonne.
Tata Steel's decision may also have been necessitated by the US's 25% tariff on steel imports. Its Netherlands plant exports about 670,000 tonnes annually out of a total production of 6.8 million tonnes to its downstream subsidiaries in the US. The Indian and UK operations have minuscule exposure to the US.
هذه القصة من طبعة April 15, 2025 من Mint Hyderabad.
اشترك في Magzter GOLD للوصول إلى آلاف القصص المتميزة المنسقة، وأكثر من 9000 مجلة وصحيفة.
هل أنت مشترك بالفعل؟ تسجيل الدخول
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