Tata Steel Long Products, in its provisional figures for 2QFY24, has spotlighted an increase in crude steel production on a year-on-year basis. This rise can be predominantly attributed to the contributions from Neelachal Ispat Nigam Limited (NINL). However, a sequential dip from 1QFY24 to 2QFY24 in crude steel production and deliveries has been observed, primarily due to the shutdown of the Steel Melting Shop (SMS) at NINL. For the first half of the fiscal year (1HFY24), Tata Steel Long Products reported crude steel production at 654 thousand tons, with deliveries amounting to 626 thousand tons.

Shifting the focus to Direct Reduced Iron (DRI), the company reported a decline in both production and sales volumes for 2QFY24, in comparison to the same quarter the previous year. A critical factor for this decline is one of the two DRI units transitioning to function as a conversion unit for Tata Steel since the end of November 2022. Moreover, on a quarter-on-quarter basis, DRI production witnessed a dip due to a planned maintenance shutdown. Concurrently, a decrease in DRI deliveries was noted because of augmented captive consumption.

In essence, while Tata Steel Long Products enjoyed a surge in its crude steel production and deliveries for 2QFY24, it faced headwinds in its Direct Reduced Iron operations. The strategic decisions and operational dynamics of the company have thus played a significant role in influencing these figures. As Tata Steel Long Products navigates through these challenges, its performance trajectory remains a focal point in the steel industry’s landscape.

Key Takeaways:

• 2QFY24 crude steel production and deliveries climb YoY, thanks to Neelachal Ispat Nigam Limited (NINL).
• QoQ crude steel production and deliveries see a decrease owing to NINL’s Steel Melting Shop shutdown.
• Half-year crude steel production and deliveries stand at 654 kt and 626 kt respectively.
• Direct Reduced Iron (DRI) production and sales volumes dip both YoY and QoQ.

  India, Tata Steel Long Products